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What is the reduction factor-bound (CRM)?

The reduction factor-increase is known as experience rating. Indeed, it changes the insurance premium of a driver according to its makers claims of the previous year. It allows you to adjust this fee according to the level of risk posed by the driver. Thus, it has more accidents accountable and its contribution increases (and vice versa).

This coefficient is defined by Article Annex to Art. A 121-1 of the Insurance Code. It is mentioned on each notice of expiry of the contract and the insurer may disclose to the insured upon request.

Namely: the coefficient should not be confused with increases for aggravating circumstances that the insurer may apply in case of fault accident under the influence of alcohol, a hit and run, etc..

How this coefficient is determined?

The reduction factor-increase is calculated taking into account the losses incurred since the last due date of the contract. During the first year of coverage, this coefficient is 1.

Then, each claim-free years in charge, can be multiplied by 0.95 (a reduction of 5% per year without an accident). If the coefficient is less than 1, it is called a bonus. For example, if the coefficient is 0.7, the bonus is 0.3, thus 30%.

Disaster manager in the year, the coefficient is multiplied by 1.25 (an increase of 25%). In the case of a coefficient greater than 1, this is called a penalty. Thus, in the case of a coefficient to 1.35, the penalty is 35%.

If the responsibility of the loss is shared between drivers, the coefficient reflects, it is multiplied by 1.125 instead of 1.25. The increases are cumulative for disaster. Thus, if there are several claims in the year, the CRM is multiplied by 1 payday loans no teletrack.25 (or 1.125) as many times as there are claims.

For example, consider the case of an insured whose coefficient is 0.60 (that is to say, a 40% bonus). Suppose he had two accidents in the year: one of which he is fully responsible, and another where wrongs are shared. The following year, then its coefficient will be 0.60 x 1.25 x 1.125 = 0.84. Thus, the bonus will be only 16%.

Special cases for calculating the bonus-malus

The reduction factor-increase is capped. Indeed, it can not exceed 3.50. Moreover, it can not be less than 0.50. The maximum bonus is 50%: this corresponds to 13 years of insurance claims without charge.

In addition, two exceptions to the rule changes relax the annual operation of the CRM. Thus, if a driver has a coefficient of 0.5 for at least three years, the first at-fault accident does not change. It's sort of the right to make mistakes the good conductor.

Conversely, if a driver whose coefficient is greater than 1 declares no-fault accident for 2 years, its coefficient is reduced to one. This rule is called the rule "of the rapid descent." Its purpose is not to penalize too long drivers who drive responsibly. The cost of insurance can indeed become deterrent, prompting some drivers to drive uninsured.

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"To compare auto insurance quotes, remember to give your broker your coefficient, which is on your maturity notice.

The disaster is averted for Athens, temporarily saved from bankruptcy, and for the euro area, which sees the specter of contagion in the Mediterranean.

The crisis of indebtedness is at a turning point? Tuesday is a Northerner, the Swedish Finance Minister Anders Borg, he returned to evoke a more sober interlude. "The Greeks are still trapped in their tragedy," he said, while Europe "sees turn in the last act of a longer time drama."

The next scene begins on a new thriller, on the side of the Parthenon. If the government wants to open Papademos some 237 billion government loans and private debt erasure promised Tuesday in Brussels, he has only a few days to prove itself. In the morning, Christine Lagarde has said bluntly: the IMF will release the funds with other "after implementation of prior commitments" in Athens.

Parliaments of the three countries most reluctant – Finland, Netherlands and Germany of course – will not give themselves the green light after having tried to play. Minister Wolfgang Schäuble, who complained there is little Greece as a "bottomless pit", even its detailed requirements for February 27, day of the Bundestag vote planned: a 22% lowering of the minimum wage, a reduction in budgets public health, pension reform and the massive onslaught of local governments.

Explosive political equation

Behind the hard line displayed in the north lies a concern shared throughout the euro area. The team of technocrats led by Lucas Papademos living its last weeks before the new elections. The government which emerges from the polls in April could, quite a true popular mandate, to be more devious meet European requirements no faxing 1 hour payday loans. So now that Greece has to swallow in one gulp if possible, the bitterest of his potion.

Problem. Both major parties Conservative and Socialist – those who have subscribed to medicine Brussels – together account for 40% of the vote only. Conversely, the far left and anti-European movement of honey from the wrath of the street facing austerity. This equation is politically explosive that pretends to ignore the financial agreement Tuesday.

Right, Antonis Samaras, still favorite in the polls, the results in economic terms and said aloud that report confidential documents as hopeless as submitted to the EU and the IMF: "Without economic growth, said the leader of New Democracy , immediate budgetary objectives can not be kept and the debt will remain unsustainable in the long run. "

It is the fault of austerity. Greece enters its fifth year of recession with no other prospect in the euro as "internal devaluation" – that is a general decline in revenues – expected to make it competitive for the future. The decrease in the minimum wage needs to accelerate the purging. But for now, it undermines domestic demand, that is to say the activity, and at the same time increases the relative burden of debt. Europe and Greece have gained time. But except to return to growth, they have certainly not finished with the appointment of a crisis.

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Jeremy Lin and the American fairy tale. It only took seven games to the playmaker of the team's basketball for the Knicks panic counters and generate a media frenzy rarely seen in America. The defeat of his team that night, for the first time since its revelation to the public, does not diminish the power of the phenomenon Lin, who finished top scorer of the match. A true media darling, the "Lin mania" is now an economic nature.

According to Patrick Rishe, a journalist specializing in sports economics at Forbes, Jeremy Lin should earn this year between 10 and 20 million dollars in revenue for his team. Based on his calculations, he believes that the brand Jeremy Lin is now worth $ 14 million. Already, sales of products Knicks exceed those of all other teams in the championship. Better yet, the shirt of Jeremy Lin is currently the best selling of the entire league by site nbastore.com, ahead of Kobe Bryant and Lebron James, however, the two superstars of American basketball.

Since its emergence in the field, television audiences matches the Knicks were up 66%, according to ABC News and the price of tickets at Madison Square Garden, where the team plays, increased by 27%. A phenomenon that extends to the whole country, all brought to theaters soon receive the full display of the Knicks team and seeing the price of tickets on the black market soar.

Nike bounces on the phenomenon

Lin's exploits have even an impact on stock markets. The share price of the group Madison Square Garden Entertainment, which owns the Knicks, has increased by 6.2% over the last five days, reaching its highest of the year, according to Bloomberg. Performance directly attributed to Lin, the group has announced losses in the same week.

It did not so much to interest sponsors. Decisive with his team, he also shines personality, humble and smiling and personal history. Out of nowhere, rejected by the leading clubs, he finally won through hard work, courage and tenacity. All values ​​that symbolize the American dream and please brands. Do well because already under contract with Jeremy Lin before hatching, Nike also is preparing to release a shoe in the name of the player and the colors of the Knicks. Jeremy Lin signed his first professional contract this week, amounting to 762,000 dollars for the season. It's a safe bet that it would reach many more especially if he continues to earn as much.

Wind "Folin" Asia

First American player of Taiwanese to move in the American Championship of Basketball, Jeremy Lin has become at the same time the new headline the NBA for Asia, which represents the largest market outside the league, according to Reuters. Asian TV channels were also eager to buy the rights to broadcast matches, the Chinese state channel CCTV has even changed its programs to broadcast several games of the Knicks this week.

"This is an unprecedented phenomenon and I am delighted for him, for the league and the Knicks' David Stern said Tuesday, the powerful boss of the NBA. It is true that the media hype and commercial around that player's personal story atypical is a boon to the American basketball league whose image had been tarnished by a long and costly strike that has raised fears a moment the cancellation of the season. Some broadcasters and sponsors in mind, feared even a year on the cheap and tasteless. By Jeremy Lin, American sport has found a goose that lays golden eggs and intends to capitalize on it. Remains whether it will uphold and maintain this level of play

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PSA announced this morning its annual accounts. The group recorded an operating profit of 1.31 billion euros, against 1.79 billion euros a year earlier. The net profit is not apparent at 588 million euros, against 1.13 billion euros in 2010. Meanwhile, turnover rose by 6.9%, to 59.9 billion euros.

The action jumps over 3% this morning. Maybe the confirmation of reorganization plans, at a cost of 310 million euros, appeals to investors.

One thing is certain, Peugeot loses money on its core business, namely to build and sell automobiles. To be precise, the industry grouping of PSA Peugeot Citroen and recorded an operating loss of EUR 92 million in 2011. In the second half, the deficit in the division has even approached the 500 million euros. Outside this perimeter, the Chinese subsidiary is profitable but it remains small (404,400 vehicles sold).

Peugeot may rely on other divisions recorded strong performances. This is particularly true of Faurecia payday loan lenders. The bodybuilder, dying a few years ago, posted an operating profit of 651 million euros (+43%). Peugeot is the majority shareholder of Faurecia, with 57.43% stake. For its part, the logistics specialist Gefco, 100% subsidiary of PSA, saw its operating profit to 223 million euros (+12.6%). The bank PSA Finance has also posted profits.

Prospects fuzzy

Beyond the figures, investors are sensitive to the perspectives of PSA. In this respect, the release of the group is unclear. While the financial community will not fail to appreciate the emphasis on cash management, there is no forecast of operating margin. It is unclear whether Peugeot will be profitable this year. The group expects a 5% drop in sales in Europe with 10% in France. Growth should be at the rendezvous in emerging countries.

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The atmosphere is gloomy in the Paris Stock Exchange on Wednesday. After opening sharply down, the CAC 40 ceded 0.23% to 2863.30 points at 9:40. Unable to maintain its rebound yesterday, the CAC 40 would be difficult to bounce back following the announcement of a further slowdown in the Chinese economy. Preliminary PMI Manufacturing activity in China, issued by HSBC this morning, recorded in November, its biggest drop since March 2009, to 48 against 51 in October. Below 50, this means a contraction.

The country's dependence on exports is the main cause of this fall, analysts said the bank flexcheck cash advance. China is beginning to feel the impact of the economic downturn of its main European and U.S. clients. To this end, HSBC is lowering the forecast industrial production to 11% or 12% year on year in the months to come (against 13.2% in October).

Both countries, however, block the proper role of the ECB. The German government remains the main obstacle to further action of the European Central Bank in the European market debt. French Prime Minister Francois Fillon acknowledged Tuesday, before the members of his majority, convinced that Germany was "a major difficulty."

World Youth Day 2013 World Cup soccer in 2014 Olympic Games in 2016 … The growing number of events "global" in Rio de Janeiro causes a surge in property prices in the Brazilian megalopolis.

Already supported by economic growth and rising real, the national currency, the real estate skyrocketed. In one year, prices rose 16% on average in the city and over 50% by the sea near the beaches chic Leblon or Ipanema, the price per square meter than 5800 euros. The thrust is so violent that the experts are concerned about the harm of a potential "bubble".

Another phenomenon, more unexpectedly, boosts rents: the "pacification" by the police in the favelas, the former slum houses usually hard.A survey by the Getulio Vargas Foundation shows that in areas where security forces have regained control deal with drug dealers, rent increases of 6.8% is higher than in other parts of Rio, the first year .

The study states that the pursuit of this strategy of pacification would even cause a "catching up" in house prices, which are on average 25% cheaper than elsewhere. Suddenly, the mayor of Rio concerned about the increase of illegal constructions in the favelas.

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They clearly anticipated the fall of George Papandreou after the declarations of the party leader of the opposition of Greece, Antonis Samaras (he called Greek Prime Minister to resign and form a transitional government).

The creation of a transitional government is not likely to create uncertainty in the markets?

It depends on how the rating agencies will analyze the delay between the creation of the transitional government and the establishment of early elections. For now, financial markets seem ready to allow time for Greece to install a new government. However, the risk of default is not eliminated. Financial markets continue to navigate to the end of the year.

Financial markets have now turned their eyes towards Italy.

The rescue of Dexia bank would not cause an earthquake in the immediate field of the note to the French public debt. After their colleague Fitch, the rating agencies Moody's and U.S. Standard & Poor's estimated on Monday that the country's prestigious AAA is not threatened by the guarantees made to the Franco-Belgian institution in difficulty.

"Right now, there is no impact and we have a stable outlook," said the senior analyst of France, Alexander Kockerbeck. "We study the commitments (which were taken Ed) course, as we do every time, but at the same time, we take into account many other factors." In particular the desire to reduce the deficit, a point on which France has assured the agency, he added.

For its part, Moritz Kraemer, head of European Standard & Poor's, said the AAA French is "justified", adding that S & P maintains a "stable outlook on the rating for the moment." "As an agency we report rating the risk of a decline in the note by changing the negative perspective, which is not the case of France, he developed. However, he wanted to keep the pressure: "We continue to monitor the discussions in the political line of sight with the presidential election approaching, to know the strategy to reduce the debt ratio."

Not to increase debt

France has committed, along with Belgium and Luxembourg, to ensure 36.5% of 90 billion euros that will be stored in a "bad bank", or 32.85 billion euros.An amendment "on the guarantee conditions of financing Dexia itself no guarantee of assets" will be filed, said on Wednesday the Minister of Finance Baroin. This approach "has the effect not to increase debt," he pleaded.

The rating agency Fitch has even found last Wednesday by the voice of the analyst Maria Malas-Mroueh, that if "an increase in financial liabilities is not a good thing, efforts to support the banking system can be positive ". However, the cost of insurance against default risk of the French State (CDS, for "Credit default swap") climbed Monday morning from 5 points to 181 points, according to Markit financial services agency. At the same time, the CDS Belgian took 6 points, 290 points. What widen the gap with Germany, whose CDS remained stable at 100 points.

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Faced with the fear of a general banking collapse, the Franco-German couple is once again under the spotlight. And once again, things are not simple. Nicolas Sarkozy will be tomorrow in the German capital to "speed up" with Angela Merkel the implementation of the bailout of a Euro still full turbulence. The urgent need for the French president and German chancellor, is to flatten their differences on the use of the European Financial Stability Fund (EFSF) and reach a tentative agreement on the thorny issue of the recapitalization of banks.

Angela Merkel ruled Thursday that "there was a need to recapitalize, it would be reasonable to invest money" in terms of what could cost an emergency rescue industry.But she insists on the fact that the Fund will be used to bail out financial institutions on the condition that states can not themselves "to support the recapitalization of their banks' and it puts" endangered the euro area as a whole. "

In fact, Paris Berlin suspected of wanting to directly use the emergency fund to recapitalize banks weakened by the prospect of a debt reduction Greek. "The French have misunderstood the EFSF, decrypts it does in Berlin. Our position is that banks must first seek funding markets, and the side of the national public authorities. Only when there is no money available comes the European level. The EFSF is a tool for countries like Greece or Portugal.If a country like France – among the strongest financially of the euro area – wants to appeal, then this is the door open for all members of the area had ro dig into the fund. "

Berlin suspects Paris

An over-interpretation, says it does on the French side. "We have not yet begun to discuss that!" Do we wonder at the Elysee. At Bercy, it ensures not see fundamental differences with Berlin. "We agree with Germany, said the entourage of the Minister of Economy, Baroin, the fact that more capital into banks, including French," even if only to meet new international standards of Basel III in 2013.Whenever possible, the French banks also plan to comply with without recourse to the capital, let alone the U.S. – by separating certain activities if necessary, by distributing fewer profits to build equity .

But if there had to be re-capitalization, especially to reassure investors, "the sources must first be private," insists one at Bercy. "Ultimately, this should be to rely on injections of public capital." According to Paris, "a European coordination is essential to determine the amount of capital to meet the deadline by which this capital is to be achieved, and the tools for that. " It is on these criteria that France and Germany could agree this weekend.For its part, Brussels will make proposals for a coordinated recapitalization "in the coming days."

Moreover, given the deepening crisis, Angela Merkel has gradually accepted the idea of ​​economic governance of the European Union, defended by Nicolas Sarkozy. Expanding the powers of EFSF part of this process. However, the Chancellor – who imposed hard fought his troops to ratify the Bundestag building – is faced with a majority crossed by a strong current Eurosceptic.

Markets would also like to know more about the technical means to leverage the clout of EFSF. These contain the spread of the crisis heavyweight like Italy, Spain, and Portugal, while the levees are still weak.Should we go further and erase a more substantial part of the Greek debt? Should we consider that the Fund provides guarantees? The German finance minister, Wolfgang Schäuble, at least possible that Germany spends more money than EFSF the 211 billion passed by the Bundestag.

These tensions, it is now the standard mode of operation between Paris and Berlin. Pressure mounts on both sides of the Rhine, until a compromise emerges in a head-to-head at the highest level. Given their respective domestic political weakness or Merkel or Sarkozy can not afford a failure.

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The Paris Bourse, which opened down slightly declining by 1.09% to 2990.47 points on Wednesday quickly regained balance and symbolically back 0.07% in early trade to 3,021.33 points. However the decline was accentuated in the morning with a decline of more than 1% to 10.30. The day before, was awarded the CAC 40 5.74% to close at 3023.38 points. Same trend in Frankfurt the Dax gained 5.29% and in London the FTSE was up over 4%. On Wall Street, the Dow Jones gained 1.33% and the Nasdaq 1.20%. Wednesday morning, part of Asia continues to rise, but shows a little more caution.

Global stock markets are indeed won by a renewed optimism since the beginning of the week on the ability of Europeans to stop the debt crisis in the eurozone. Europeans should take measures to stabilize Greece and the banking sector.Strengthening the emergency fund indebted countries (EFSF) was particularly mentioned.

On Wednesday, France also formalize and discipline its budget for reducing government deficits and contain the debt. The presentation of the presentation of the draft budget law for 2012 by the Minister of Economy Baroin and budget minister Valérie Pécresse is expected in 17 hours.

The numbers of zero growth (0.0%) in the second quarter were confirmed by INSEE on Wednesday morning. Other macroeconomic indicators are expected across the Atlantic: orders for durable goods in August, the United States will be published at 14.30 and the weekly crude oil inventories at 16:30.

As for the oil markets, a barrel of "light sweet crude" for November delivery lost 1.25 dollars to 83.20 dollars in early electronic trading.A barrel of Brent North Sea crude for November delivery gave 96 cents to 106 paperless payday loans.18 dollars. The previous day, oil had spread over 4 dollars in New York.

The bank to follow

Among the values ​​to be followed, the bank had literally flown Tuesday evolve piecemeal. BNP Paribas sells 1.50%.

Societe Generale (-1.10%) is also seeking to sell its stake in Newedge, a subsidiary jointly owned with derivatives Crédit Agricole (0.62), as part of its plan to sell non-strategic assets, according to Reuters.

Green Bank is expected to announce a sale of assets today, reports the Financial Times. Following the example of BNP Paribas and Societe Generale, Credit Agricole and wants to improve its solvency ratios.The amount of the sale, however, was not known by the British newspaper.

The Franco-Belgian bank Dexia (7.81%) examine options to strengthen its balance sheet but excludes any split in the group, said Tuesday its chairman at the end of a board of directors held fueled many speculation.

Neopost (-1.02%) announced Tuesday an increase of 2.7% of its turnover in the first half (+5.9% excluding currency effects).The solutions specialist courier has confirmed its forecast 2011 and launched a plan to optimize its structures in the United States and Europe which should generate annual savings of about 7 to 8 million euros in 2013 .

Renault (-0.25%) according to a source close to the deal quoted by Reuters, its partner Nissan will invest $ 1.5 billion (1.1 billion) in building a plant in Brazil able to produce electric cars.

Alten (4.55%) must also publish its first half results.

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