TELEPERFORMANCE_Registration_document_2017

RISKS AND CONTROL

2.2 Insurance and risk coverage

2.2 Insurance and risk coverage

2.2.1 Overall Group insurance strategy

Teleperformance’s insurance strategy is designed to safeguard the Group’s assets in view of risks to which they might be exposed. The strategy aims to standardize and optimize coverage, manage insurance policies centrally and minimize costs. The Group has set up international insurance programs covering property damage, loss of profits and civil liability. Insurance policies are taken out via brokers with top-class international insurance companies.

Coverage caps are established in line with the Group’s inherent business risks, taking into account its claims experience and market conditions, and comply with local regulations. A third-party organization may be entitled to audit and analyze the insurance programs to ensure the risk coverage is appropriate and sufficient. The Group does not have a captive insurer and there are no material risks that the Group self-insures. Total premiums paid for 2017bamounted to €7.2bmillion.

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2.2.2 Insurance programs

2.2.2.1 General liability and professional indemnity insurance The Group has set up a centrally managed general liability and professional indemnity insurance program. In principle, all subsidiaries are covered by this program, either under the Group policy or under separate policies managed locally in accordance with local regulations. Coverage for any new entity is always assessed in advance so as to define the conditions of their inclusion in the global program. The terms and conditions of this program can be amended to take into account changes in business activities, the insurance market and risks incurred.

2.2.2.2 Property damage and business interruption insurance The Group has set up a property and business interruption insurance program in Europe also covering many non-European CEMEA countries. The scheme extends to subsidiaries in other parts of the world whenever this is possible with regard to local legislation and the opportunities for optimizing cover and costs. Non-consolidated subsidiaries are insured separately in accordance with applicable local legislation and regulations. 2.2.2.3 Other risks The Group is covered by other insurance policies. Depending on the type of risks involved, these policies are taken out either at local level, in accordance with the legislation in force in each country, or at global level in order to optimize insurance costs and the level of coverage required.

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Teleperformance bb - bb Registration documentbb 2017