LONDON--(BUSINESS WIRE)--
ACE Group will highlight ten top tips for brokers on the intricacies of
placing effective, compliant multinational insurance programmes at the
BIBA 2015 Conference and Exhibition that opens in Manchester today.
Earlier this year ACE launched ACE Multinational Partner, a package
cover for UK & Ireland based companies with one or more overseas
subsidiary1. As a response to the related research in which
brokers expressed concern about lack of knowledge and expertise in
placing complex multinational programmes, ACE has developed its top tips
for brokers for successfully managing global programmes.
1. Take a bottom up approach - when building a global programme,
look at each territory individually and ask 'what does the insured need
in the event of a loss?' Structuring the programme around the answers
will allow you to respond to your client’s individual needs.
2. Challenge your insurer partner - service is key so challenge
your insurer partner to deliver on global service for your client. When
will they issue local policies, certificates, and invoices? What service
standards do you want in place? How will they help you monitor programme
data in real time?
3. Give consideration to claims handling at an early stage – quiz
prospective insurers on how they would handle a loss overseas. Can local
claims teams provide support on the ground when needed? How will they
ensure the client management team is kept up to date? And where will the
claim be paid?
4. Don’t forget your clients’ risks – compliance with local
regulations applies to niche risks too. One central policy will not
respond to all eventualities in all territories. Discuss with your
client the need for local policies for their D&O, accident & health,
marine and other specialist lines placements.
5. Think compliance - non-compliance with local regulations can
potentially result in fines, loss of licence, reputational damage and
business interruption for your client and for you. Ensure you have
reliable sources for compliance guidance, and keep up to date with
changes.
6. Think local – local policies aren’t just about compliance,
they provide local market standard cover, and are often required for
local territory certificates, travel visas etc. It’s important these
needs are taken into consideration when structuring the programme.
7. Demand transparency from your insurer partners - your client
will need evidence of programme compliance, everything from visibility
over premium allocation, to local taxes and charges, to what the local
policy wording and certificates say. Challenge your insurer partners to
provide this transparency.
8. Put all your eggs in one basket - one comprehensive,
well-structured multinational programme performs better than multiple
policies in multiple jurisdictions placed with multiple carriers,
especially where your client has interdependency between territories.
9. Consider both cost and benefits - multinational programmes may
appear more expensive at first sight, but in the long run they are more
cost effective as they give greater certainty and consistency of
coverage and service.
10. Take a team approach - make sure the right level of
visibility, procedures, controls and communication processes are in
place, and there is constant communication involving all parties. Don't
worry if you don't have all of the answers yourself. Be prepared to pull
in knowledge where required to build the right team for your client.
This is likely to include a partner insurer, and brokers in other
territories.
Jeff Hobson, ACE Multinational Partner Project Team Member, ACE European
Group, said:
“We know from our research that regional brokers across the UK are keen
to expand their knowledge of multinational programme placement because
more and more of their clients are expanding overseas for growth.
However, cross-border policies are a complex minefield that many find
hard to navigate.”
“As a leading insurer with an extensive global network and a strong
track record in managing multinational programmes for clients of all
sizes and industries, we are well placed to help both brokers and their
clients to understand the challenges and offer easy to manage, cohesive
and compliant solutions.”
-ENDS-
About ACE:
ACE Group is one of the world’s largest multiline property and casualty
insurers. With operations in 54 countries, ACE provides commercial and
personal property and casualty insurance, personal accident and
supplemental health insurance, reinsurance and life insurance to a
diverse group of clients. ACE Limited, the parent company of the ACE
Group, is listed on the New York Stock Exchange (NYSE: ACE) and is a
component of the S&P 500 index.
ACE UK & Ireland’s five regions are:
Ireland (Dublin and Belfast) · Scotland (Glasgow, Aberdeen) · The North
(Leeds, Manchester, Newcastle) · Midlands (Birmingham) · London and
South East (London, Maidstone, Reading, Watford)
Additional information can be found at: www.acegroup.com/uk
1 http://www.acegroup.com/uk-en/media-centre/details.aspx?article=/uk-en/Home/Assets/news/20150330005007en.html
Source: ACE Group