Based in Monaco for several decades, firstly as a general agent, Alain Saccone is now an insurance broker and Chairman of the Monegasque Chamber of Insurance. Meet him.
Is the insurance sector well represented in Monaco?
Very well represented. In 2.5 km2 of geographical territory there are fifty agents or brokers, and over 130 companies represented.
Hence the importance of a Monegasque Chamber of Insurance
Indeed. The 1950s saw the creation of the Syndicat des Agents Généraux d’Assurance. Then the Monegasque Chamber of Insurance was established in 1995, with the desire to bring together both general agents and brokers for a more global comprehension of the profession. The Chamber has welcomed thirty firms since it was established.
What are its missions?
Firstly, to represent and defend the economic and professional interests of its members, as well as to represent our profession. To ensure compliance with the regulations. To study and apply provisions which allow positive growth for the profession, with the goal of better service for insured and insurable clients.
Agents and brokers can join the Chamber after one year’s work in the Principality. As they are subject to certain admission requirements, those professionals who are members of our Chamber provide a guarantee of worthiness, professionalism and skills.
Does the insurance sector have a high importance in Monaco?
It has around 300 employees. We do not have statistics available on how much the sector represents in turnover, except for the specific risk of work-related accidents and occupational diseases. The players have evolved greatly - there are fewer general agents, brokerage firms are growing in number, and insurance services increasing.
Are there no specifically Monegasque insurance companies?
Several decades ago in 1963, a Franco-Monegasque agreement was signed. It is still valid, although there is some administrative flexibility these days: all insurance companies wishing to operate in Monaco first need to have a purely French administrative authorisation and then have to apply for authorisation from the competent Monegasque authorities.
Only insurance companies authorised by the Monegasque government may operate in the Principality. As Monaco is not a member of the European Economic Community, freedom to provide services does not apply.
As regards agents and brokers located in Monaco, they are also subject to authorisation by the Monegasque authorities. For your information, an agent represents an insurance company and conversely a broker represents a client.
Are the Principles of Insurance in Monaco identical to those that apply in France?
There are some differences:
Taxes levied on insurance contracts do not have the same rates as in France and they are payable to the Monaco tax authorities. This applies to all risks situated within Monaco.
Apart from a few exceptions, insurance contracts are largely identical to those available in France. Some covers, such as natural disasters or terrorist attacks, do not apply, however.
In terms of construction, neither the ten-year cover nor an equivalence to the “damage resulting from building work” cover are mandatory.
Likewise, as employees’ work-related accidents are not covered by the social security system, it rests with all employers to take out a contract with an authorised company (through an agent or broker) to cover this risk prior to hiring any employees.
Regarding additional health contracts, as the Convention de la Caisse de Compensation des Services Sociaux rate differs from that of the French Sécurité Sociale, contracts need to be adjusted and to provide adequate reimbursement rates.
Do you think the Monegasque financial centre is well endowed with different insurance services?
The Monegasque financial centre is particularly well endowed with companies and services, whatever one’s needs – goods insurance, personal insurance, professional liability contracts by area of business, business travel insurance, pensions, life insurance and financial investments etc.
All needs are now covered and in 99% of cases new entities wishing to enter the Monegasque insurance market do not offer different services to the existing ones. So we need to be more prudent in issuing permits to practise.
Are there special services for very high income clients?
Yes, there are special covers and services for mansions, yachting, private jets, international health contracts etc.
Are insurance-related financial products subject to the same provisions as those distributed by banks?
They are subject to the same provisions and controls as those of banks, and must of course be supplied by agents or brokers authorised in Monaco. Insurers are also subject to the provisions of the anti-money laundering laws, even though insurers perform no money handling: payment is made directly to the company and the funds do not go through the insurer’s account. When the latter has obtained all the necessary documents, the company can still block the application and decide not to issue the cover. The precautions are very tough.
Is there no competition between bancassurance and insurers?
None. In Monaco we have complementary activities. The private banks essentially sell financial products.
I am keen to thank AMAF (the Monegasque Association of Financial Activities), which regularly invites Monegasque Chamber of Insurance players to the information meetings it organizes. This shows our closeness.
