The insurance policy aims to provide the best protection for the Group's assets and people against the occurrence of major risks that could adversely affect it. The Group has implemented group insurance programmes (in particular for Property Damage & Business Interruption, Third-Party Liability, Cyber, Transport, Credit Insurance and Construction) that harmonise coverage and optimise insurance cover for all its subsidiaries throughout the world, except in countries where regulations prohibit this type of arrangement (see "Restrictions" below). Local coverage has also been put in place in the countries in which group programmes cannot be implemented. This policy is applied as follows:
The Group also arranges policies through the insurance market to protect itself against risks, subject to the coverage available and standard exclusion clauses.
The financial solvency of insurers is an important selection criterion for the Group. Furthermore, the insurance programmes subscribed by the Group mainly involve coinsurance between the various major players in the international insurance market.
L'Oréal's prevention policy, implemented jointly with its insurers, includes prevention measures related to fire, environmental and climate change risks.
General civil liability: this worldwide programme subscribed for all Group subsidiaries (except where local Restrictions apply) includes, in particular, civil liability and damage to the environment that is sudden and accidental. It covers the financial consequences of the civil liability of Group entities, if they are liable.
Property damage and business interruption: this programme provides cover for fire, lightning, explosion, theft and natural events within the limits of the products available on the insurance market. The Group has set up a worldwide programme to cover all its property, chiefly non-current assets and inventories (except where Restrictions apply). This cover also includes a portion on business interruption directly resulting from covered property loss or damage. As the capacity of the insurance market is limited for certain risks, this programme includes sub-limits, particularly for natural events. Through its reinsurance subsidiary, the Group carries risk retention levels that are not material at consolidated level, and these are applicable over and above local deductible amounts. The offering includes site prevention inspections by specialist departments of the leading insurer.
Cyber: a cyber insurance policy provides financial cover for the consequences of IT-related risks, subject to exclusions and warranties available on the market. As it is a "multi-risk" policy, cyber risk insurance comprises several components. Through its reinsurance subsidiary, the Group carries risk retention levels that are not material at consolidated level, and these are applicable over and above local deductible amounts.
Transport: the Group has set up an insurance programme to cover the transport of all its products and raw materials. All subsidiaries benefit from appropriate and uniform cover for risks related to the Group's logistical operations (except where restrictions apply).
Customer credit risk: Group subsidiaries must set up credit insurance, assisted by the Group and under the terms and conditions negotiated, in addition to their own credit management policy, provided that insurance cover compatible with their level of sales activity is available under financially acceptable conditions.
Construction: the primary aim of the worldwide Construction insurance programme is to standardise the conditions of cover for all projects, in all countries. It also makes it possible to disseminate a general Construction insurance policy, centralised corporate management and, lastly, warranty optimisation.
The Group seeks to act in all circumstances in accordance with the Ethical Principles it has set itself, and to comply with the laws and regulations in force in all the countries where it operates. L'Oréal was furthermore recognised for the 16th time as one of the "World's Most Ethical Companies" by the Ethisphere Institute. The Group applies a zero-tolerance policy in terms of corruption.
L'Oréal has been a member of the United Nations Global Compact since 2003 and supports the fight against corruption. The Group is committed to complying with the United Nations Convention against Corruption of 31 October 2003 and to applying all applicable laws, in particular the Sapin II law in France.
L'Oréal is a member of the International Chamber of Commerce Anti-Corruption Commission and of Transparency International France. This commitment is supported at the highest level of the Company by its Chief Executive Officer who renews L'Oréal's commitment to the United Nations Global Compact every year.
