4 things to consider when choosing an international insurer

Published on Thu, 11/04/2024 - 14:01

With the ever-evolving global landscape from post-pandemic consequences to the cost-of-living crisis, war in Ukraine and natural catastrophes, international businesses with exposures in multiple countries face a variety of unique challenges.

Do they set up a locally registered entity? Are they required to provide evidence of cover from a local carrier? Will they have local presence ‘boots on the ground’ and brick-and-mortar operations? How would they want claims to be handled and settled? What are the tax implications of operating in a foreign country? And perhaps most importantly, will they be compliant without locally admitted insurance policies?

The global programme insurance sector is estimated to be at $50bn GWP, with 80% of premium produced in North America and EMEA. As global companies look to diversify and broaden their footprint, it’s never been more vital that businesses with exposures in multiple countries source tailored insurance solutions from an insurer specialising in multinational business.

Here are four things to look for when selecting a global insurance carrier:

  1. Does the carrier have an international team focused solely to providing innovative, tailored solutions for international organisations?

Controlled master programmes are complex and uniquely different from domestic policies. Choose a carrier with a dedicated, centralised international team who are experts in understanding specific coverage requirements, recognising the client’s logistical barriers and can adapt to the speed of evolving macro-economic advancements to find global holistic solutions.

The client experience should be seamless and transparent. Leading international insurers prioritise minimising administrative headaches for the client by connecting all key stakeholders through clear communication, skilfully coordinating locally admitted policies and controlling premium flow to ensure an efficient and smooth experience for the client’s head office and their respective offices.

Tip: Ask your insurer to evidence how they plan to provide a top-tier co-ordinated approach to managing your global programme.

  1. Does the insurer have local experts on the ground in the countries your business or client requires cover?

Local claims, finance and risk control experts are an essential component of any good international insurer. No matter how good the centralised team may be, there is no substitute for local knowledge and expertise so it’s crucial to find a carrier with a broad, robust and trusted network of market-leading experts on the ground.

Tip: Make sure your insurer can explain how they guarantee consistent quality of service and local product expertise across their network.

  1. Does the carrier employ a flexible, bespoke approach?

No one policy is the same so be wary of off-the-shelf, rigid programmes. A good international insurer understands that a flexible, customised approach is instrumental in arranging global programmes. This allows an insurer to better understand the client’s operational intricacies and identify their legal, financial and contractual challenges to ultimately design a bespoke, cost-effective and compliant programme.

Tip: Make sure your insurer can walk you through possible options of how they have structured the global programme, as we all know… no one policy is the same!

  1. What digital solutions does the carrier use?

A centralised and integrated end-to-end management tool provides client with a snapshot of their global programme at the touch of a button. This unrestricted access to real time data provides confidence and peace of mind that clients are being looked after regardless of company size, location, time zone and language.

To find out more