How to provide seamless, cost-effective and compliant insurance across national borders to multinational enterprises.
When developing a global insurance programme, multinational clients seek outcomes that balance three core factors: maximise global insurance capacity; minimise cost; and maintain centralised control over their insurance programmes. Sophisticated buyers take advantage of both of their expertise in monitoring loss development, and the predictable nature of their loss profile to structure multinational insurance programmes that keep much of the risk within the corporate umbrella structure. To do so, they leverage companies’ central control of insurance terms, limits and retentions. This outcome is influenced by access to consolidated loss information, consistent loss control procedures, use of corporate buying power to obtain favourable risk transfer terms and pricing and the simplified centralized placement of global insurance coverage.
This report introduces and provides an overview of many of the regulatory and execution challenges faced by multinational companies purchasing globally coordinated insurance programmes, analyses the laws of Australia, Singapore, Hong Kong, Malaysia and New Zealand with respect to the concept of insurable interest, applies that concept to multinational insurance programmes, and, finally, provides a check list of questions that underwriters, brokers and clients in the region should consider when designing and implementing a measurably compliant.