Top three brokers support global compliance database

Global compliance database moves a big step forward

Airmic is actively seeking more partners for its efforts to create a global compliance database following the decision by Aon, Marsh and Willis to support the project

Speaking at the annual conference, chief Executive John Hurrell welcomed the backing as a big step forward that would potentially make the job of putting together international insurance programmes significantly less challenging.

It was also received enthusiastically by Helen Hayden, now deputy chair, who is the association lead Board member on this issue.

John Hurrell is having informal discussion with other leading players and says a number of insurers, including Zurich, have expressed interest. The North American risk management association RIMS are also showing support. The hope is that, as other organisations come on board, the idea will gain critical mass and start to snowball.

The project will now move to the next phase, a formal tender process with potential service providers in accordance with a specification to be agreed over the next few months. Airmic hopes to conclude the process in the first quarter of next year in consultation with a cross-market working party, which includes the European risk management federation FERMA.

The market database will make it easier for brokers, underwriters and insureds to comply with regulations on a territory-by-territory basis.

These developments follow an Airmic-led market initiative to create a Database of International Insurance Requirements. Surveys have shown this subject to be high on the list of risk manager concerns. With so many different rules around the world, sometimes changing with little or no notice, most insurance buyers have said it is virtually impossible to guarantee that programmes are fully compliant.

Companies that fall foul of the rules face possible fines, reputational damage and avoidance of claims. Since last summer Hurrell has chaired a working party, supported by leading insurers, brokers and associations, to develop a market solution.

“We warmly welcome the move by Willis, Marsh and Aon to support in principle a joint database,” he said.

“Experience has shown that complying with global insurance regulations is so complex that it is not practical for any single organisation to have all the answers. This is one area where the market can work together for the good of all.”

Steve Hearn, Chairman and CEO of Willis Global, said: “Willis recognises that buyers of global insurance programmes, and their insurers, are confronting increasingly complex and demanding regulatory obligations and we are pleased to support Airmic on this ambitious and important initiative."

Praveen Sharma, Global Leader of Marsh’s Insurance Regulatory & Tax Consulting Practice, said: “Risk managers of multinational companies are increasingly frustrated by inconsistent information provided by the insurance market on regulatory and tax matters, which creates unnecessary uncertainty. Consequently, the initiative driven by Airmic to develop a standard database created by the market for the market is welcome.”

“Aon is fully aware of the Tax & Regulatory challenges that can be associated with complex Global placements and the concerns they give rise to. We are therefore pleased to support a market initiative that could ensure greater clarity, certainty and confidence to the Risk Management community,” said a spokesperson for the broker.

"This is one area where the market can work together for the good of all"
John Hurrell