FRANCE Law and Practice Contributed by: Emmanuèle Lutfalla and Louis Fer, Signature Litigation AARPI
panies may face D&O claims if they are found to have been aware of the harmful effects and failed to act. French law provides several potential bases for such claims, including product liability for defective prod- ucts, general tortious liability, and the evolving case law on the duty of vigilance. The EU Digital Services Act, a major piece of EU legislation establishing har- monised rules for digital services, also imposes new obligations on platforms regarding the protection of minors, which could give rise to regulatory enforce- ment and, in turn, insurance claims. A collective action against TikTok alleging that it exposed young users to harmful content, including content promoting suicide, has been filed before the Créteil judicial court, with a criminal investigation opened to examine whether the platform may promote suicidal behaviour among young users. From an underwriting perspective, insurers are moni- toring these developments closely and are likely to respond by scrutinising policy wordings for exclusion clauses relating to algorithm design, addiction, or mental health harms. More detailed disclosures con- cerning content moderation practices and compliance with the EU Digital Services Act may be required at the application stage. For now, insurers are monitoring US litigation against social media companies as a leading indicator. If those cases result in significant judgments or settlements, the ripple effects are likely to reach the European and French markets, and coverage questions under gener- al liability, product liability and D&O policies will follow. 8.6 Next Generation Nuclear France has a long-standing commitment to nuclear energy, and the development of next-generation tech- nologies, including small modular reactors and fusion research, is creating new insurance considerations. The existing nuclear liability regime, governed by the Paris Convention on Third Party Liability and imple- mented through the Environmental Code, imposes strict liability on the nuclear operator and channels all claims through the operator, with mandatory insur- ance up to prescribed limits. This regime, however, was conceived for large traditional reactors and does
not readily accommodate the distinct risk profiles of SMRs. The question for next-generation technologies is whether and how this regime will apply. SMRs raise specific issues relating to the aggregation of risk where multiple units are located on the same site, the adequacy of current liability caps, and the applicable insurance requirements during construction and com- missioning phases. The French market, through the Assuratome pool, has deep experience in nuclear risk and is engaged in adapting its products, but the regu- latory framework is still being developed by the French Authority for Nuclear Safety and Radiation Protection (ASNR), and underwriting remains tentative pending finalisation of licensing and liability rules. Fusion energy presents an even more complex situa- tion, as it is currently excluded from the scope of the nuclear liability conventions, leaving victims without a specific compensatory regime and creating uncertain- ty for operators and insurers. French legal scholarship has identified the need to either extend the existing framework or create a dedicated liability regime for fusion activities. Insurers are monitoring these developments closely, with access to capacity potentially becoming a more significant barrier to deployment than reactor design itself. Early engagement between developers, spe- cialised brokers, and underwriters will be critical to validate insurability as these technologies progress towards commercial viability. 9. Legislative and Regulatory Key Trends 9.1 Regulatory Focus Areas and Supervisory Trends The ACPR has been increasingly active in several areas that directly affect dispute risk. Claims han- dling practices have been a consistent focus, with the ACPR issuing recommendations on processing time- lines, transparency, and the treatment of policyholders during the claims process. The regulator has not hesi- tated to issue formal warnings where it identifies sys- temic shortcomings, and these supervisory actions
116 I NSURANCE L I T IGATI O N 2026
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