Given its central role with respect to the operation of the natural disaster compensation plan, CCR plays an important role of intermediary between the insurance market and the State. One of CCR's missions is to monitor the financial balance of the natural disaster scheme and to book reserves so as to elevate the State's intervention threshold to its highest. In fact, the State would be obligated to intervene in the event that CCR losses would exceed 90% of its reserves. The graph shows the development of the threshold level in terms of market losses.
In 2017, the threshold level was € 5.7 billion. For the period from 2000 to 2017, the threshold tended to increase (+8% on average for the period). However, the pace of the development of this threshold was marked by decline in certain years (2004, 2005, 2011 and more recently 2017) after high losses were recorded in the year prior to the year of loss (for example, the Seine and Loire floods of 2016 caused the level of the threshold to decrease in 2017).
Although the present threshold of nearly € 6 b demonstrates the solidity of the scheme, capable of offsetting peak losses comparable to those recorded in past years, it is however necessary to underscore the potential extreme scenarios that could arise in France.