International Insurance Programs: What you need to know

If you are a business owner or executive operating in multiple countries, you may have wondered how to protect your assets and liabilities from the risks and uncertainties of the global market. You may also have encountered the challenges and complexities of dealing with different insurance regulations, laws, and customs in different regions. That's why you need to know about international insurance programs that can help you manage your global exposures and achieve your strategic goals.

In this article, we will explain what international programs are, why you need them, and how they work. We will also share some tips on how to choose the best provider and plan for your needs. Let's get started!

International Insurance Programs are collections of policies that cover the risks and liabilities of multinational companies operating in different countries in a coordinated and consistent way. They are designed to provide consistent and compliant coverage across different jurisdictions, while also considering each local market's specific needs and preferences. 

Companies need International Insurance Programs to protect their assets, employees, and reputation from the potential losses and damages caused by various events, such as natural disasters, cyberattacks, product liability, employee injury, or regulatory violations, wherever in the world they are operating. International Insurance Programs can also help companies manage their cash flow, and legal compliance in different countries. 

International Insurance Programs work by combining a master policy, typically issued by an insurer in the company's home country, and local policies, typically issued by insurers in the countries where the company operates. The master policy sets the overall terms and conditions of the coverage, while the local policies adapt this coverage to the local needs and specific laws and regulations of each country. The master policy and the local policies are coordinated by a network of insurers, brokers, and service providers, who ensure that the company receives consistent and seamless service across the globe.

Some of the benefits of International Insurance Programs are:

• They provide comprehensive and customized coverage for the company's global operations, reducing the risk of gaps or overlaps in the protection. 
• They simplify the administration and management of the company's insurance portfolio, reducing the cost and complexity of dealing with multiple insurers, brokers, and service providers. 
• They enhance the company's compliance and governance, ensuring that the company meets the legal and regulatory requirements of each country, as well as the expectations of the stakeholders and customers. 
• They improve the company's resilience and reputation, enabling the company to respond quickly and effectively to any crisis or claim, and to maintain its brand image and customer loyalty. 

• They require a significant amount of coordination and communication among the various parties involved, such as the insurance carriers, brokers, service providers, and the company's internal departments.
• They involve a high degree of complexity and uncertainty, due to the differences and changes in the laws, regulations, languages, currencies, cultures, and markets of each country.
• They entail a high level of risk and responsibility, as the company may face legal disputes, regulatory sanctions, reputational damages, or financial losses if the coverage is inadequate, inconsistent, or non-compliant.

To choose the best International Insurance Programs provider, the company should consider the following factors: 

• The provider's expertise and experience in the international insurance market, and its ability to understand and meet the company's specific needs and objectives.
• The provider's global licensing base, their network and strength of its presence in the countries where the corporation operates, and its ability to offer consistent and compliant coverage and service across the globe.
• The provider's reputation and performance in the international insurance industry, and its ability to deliver high-quality products, solutions, and customer satisfaction.
• How the provider manages the flow of data and information across its network, and its ability to provide transparency and clarity to the company.
• The provider's innovation and flexibility in the international insurance environment, and its ability to adapt and respond to the changing risks and opportunities of the global market. 

• Establish a clear and comprehensive strategy and policy for the company's global insurance program and communicate it to all the relevant stakeholders and parties.
• Monitor and review the performance and compliance of the company's international insurance program and identify and address any issues or gaps in the coverage or service.
• Leverage the data and insights from the company's International Insurance Program, and use them to improve the company's risk management, decision making, and business performance.
• Engage and collaborate with the company's international insurance provider and seek their advice and support in enhancing the company's global insurance program.

The cost of International Insurance Programs depends on various factors, such as:

• The scope and scale of the company's global operations, and the nature and extent of the risks and liabilities that the company faces in different countries.
• The type and level of the coverage and service that the company requires and expects from the international insurance provider.
• The market conditions and competition in the international insurance industry, and the availability and affordability of the international insurance products and solutions.
• The company's own risk profile and appetite, and the company's willingness and ability to retain or transfer some of the risks and costs of the international insurance program.
• Whilst there is some additional effort in collecting and providing information to the insurer, this is typically outweighed by the consistency and coordination within the program.

• Notify the international insurance provider as soon as possible after the occurrence of the event or incident that triggers the claim and provide the relevant information and documentation.
• Cooperate with the international insurance provider and the local insurers in the investigation and assessment of the claim and comply with the terms and conditions of the international insurance program.
• Seek the assistance and guidance of the international insurance provider and the local service providers in the resolution and settlement of the claim and ensure that the company receives the appropriate compensation and support.

• Evaluate the performance and satisfaction of the company's current international insurance program and identify and prioritize the company's needs and expectations for the next period.
• Negotiate and agree with the international insurance provider on the terms and conditions of the renewal of the international insurance program and ensure that the company obtains the best value and quality of the coverage and service.
• Implement and communicate the changes and updates of the international insurance program and ensure that the company and the international insurance provider are aligned and committed to the success of the global insurance partnership.