Central Pricing Bureau (BCT, France)
An independent administrative authority that sets the premium at which an insurer must cover a person subject to compulsory insurance and refused by the market, the guarantee of access at the core of compulsory insurance.
The Central Pricing Bureau is an independent administrative authority that steps in when a person subject to an insurance obligation finds no insurer willing to cover it. It has several sections covering motor liability, construction insurance, natural catastrophes, medical liability and other compulsory insurance. The procedure is simple: the refused person applies to the bureau with proof of an insurer's refusal, and the bureau sets the premium and, where appropriate, the deductible on which that insurer must cover it. The insurer cannot refuse without sanctions, including withdrawal of its authorization in the line. For natural catastrophes, the bureau may also set an increased deductible when an insurer refuses to cover property located in an exposed area. For the market, the institution is the lock that makes compulsory insurance workable: it prevents risk selection from permanently excluding a person from an activity legally conditioned on insurance, while leaving the insurer a premium set according to the risk rather than free cover.
Textbook case: a small building firm with several ten-year liability claims is refused ten-year liability cover by every insurer approached, which would legally prevent it from working. It applies to the bureau's construction section, which requires the named insurer to cover it for a premium and deductible set according to its record.
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