AZF explosion shakes up industrial cover

On the first anniversary of the explosion of the AZF chemical plant in Toulouse on 21 September, the French insurers’ association, Federation Francaise des Societes d’Assurances (FFSA) noted that the accident had caused damages of some €1.5bn (US$1.4bn). Companies had obtained €830mn in compensation for damages. The loss of the plant itself was estimated at €400mn. In addition, individual household policies generated claims of €130mn, those of group dwellings a further €110mn, and motor claims accounted for another €9mn. Fortunately, the ultimate owner of the AZF plant, TotalFinaElf, had enough spare cash to indemnify the various victims and reimburse the insurers.