FDJ secures new jackpot insurance
FDJ has announced the implementation of a comprehensive insurance policy to cover its counterparty risk starting 1 January 2020.
One of the changes involved in the tax and regulatory reform carried out as part of the privatisation of FDJ was the discontinuation of the “counterparty fund” system, a form of insurance that the state offered the company by letting it keep a portion of its gaming levies to set aside as a guarantee fund, which could be used in the extremely unlikely event of a high payout.
This reform is part of a broader process of clarifying the relations between the state and the company, which is now responsible for covering counterparty risk through an insurance policy, at its own expense.
As such, FDJ has taken out a comprehensive insurance policy with a number of top-tier French and international insurers and reinsurers to cover its counterparty risk, which will take effect starting 1 January 2020.
This contract, drawn up with insurance broker Marsh, provides a guarantee for the gains falling within its scope on an aggregate basis. It provides annual coverage of up to €150 million; it should be noted that a 2019 decree set the maximum amount payable per event at €100 million as of 1 January, with a €6 million excess.
All costs related to this insurance policy are in line with expectations and are covered by the planned budget.