[Music] imagine this a giant storm causes so much damage that the insurance companies are unable to cover the cost of compensating all of their policyholders are you finding this a harrowing scenario rest assured although global warming has sadly not had its last word insurers are doing all they can to guarantee they will not fail you Sullivan t2 is the new supervisory framework applying to all insurers the EULA its purpose is to better protect here at bian policyholders here’s how it works each time a customer takes out an insurance policy whether to protect his or her car helpful savings the insurer sets aside a provision creating reserves that can be used to compensate the policyholder if a loss occurs in addition to these reserves insurance companies have extra capital to ensure that their clients are very well protected even after a disaster event this capital acts as a safety cushion enabling insurers to oppose their commitments under any circumstances and that’s where solvency tea contain it determines just the right size for this cushion it assesses every type of risk that insurers face and defines how much capital must be held for each one using this approach there is no more than a naught point five percent each year that an insurance company will default on its customers but axor goes much further the level of capital it holds is twice the required minimum Y features the world’s leaving insurance brands must be there for its customers no matter what let’s hope nonetheless that the storm of the century will press is fine [Music]