International Programs: Insights beyond local policy issuance
A multinational company finds Swiss Re Corporate Solution's value in advice on how to manage the risk for their international program.
Read the case study below for more details.
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Background
Headquartered in Australia, the customer is in the business of manufacturing of specialty equipment used in purpose-built locations with over 50 years of history. The customer has operations in Australia, Southeast Asia, Europe, and the USA. Its manufacturing locations are in Australia and Southeast Asia, while its US operations are involved in sales and installation of the finished products.
Existing arrangement
The customer’s existing policy was initially serviced by another insurer and broker. As the customer was looking to secure a commercial general liability master policy and local policies that met their own customers’ needs, they wanted to review their existing policy to ensure it met their risk management needs.
Opportunity
Awareness of our International Programs capabilities led to a competing broker approaching us on the customer’s behalf. In collaboration with the broker, our team took the time to understand the customer’s business and needs. This enabled us to tailor and present a competitive solution and structure for them. Our team’s responsiveness, which impressed the broker, led to the further collaboration on this deal.
The collaboration
Focused on delivering value to the customer, our team worked together, bringing the best of our expertise and capabilities together. Our agile and comprehensive solution included the following four elements:
Further Information
Assessing the customer's risk
Our underwriting team reviewed the supply-chain and distribution channels of the customer’s business to identify potential exposures. A unique concern for this customer arose from the installation of their products on their customers’ own premises. Their USA-based customers as well as, their customers’ contractors demanded:
- Indemnification – the insured was contractually liable for claims/losses suffered by their own customer. Our team agreed to provide coverage for customers in the USA as an “Additional Insured” to cover the insured’s interests and customers.
- Waiver of subrogation – the insured will not pursue recovery from those parties whom the Insured had established a contractual agreement.
- Hold Harmless – Contractual agreements which the insured had signed where they will hold other parties harmless for claims/losses arising from that party or where there is agreement to hold the insured harmless.
Insight sharing from Swiss Re's USA-based underwriters
The Australian and US-based Underwriters responded to queries and concerns from the broker as well as the client to address contract demands from the insured's customers.
Advising on insurance certificates – Additional insureds
Many of the insured’s customers, contractors, principals, and landlords demanded evidence of insurance and inclusion as an additional insured. These stakeholders required that the local policies be Primary and Non-Contributory for the insured’s customer’s interest. This meant that the insured’s policy must be triggered first when a claim is submitted. Additionally, it must be the primary policy to pay the claim. These very same stakeholders required that for the insured notify the Certificate Holders in the event of a change or cancellation of the insured’s policy.
Swiss Re Corporate Solutions assisted the insured in responding to these various demands, as well as advising on certain contractual obligations that could be of particular concern. Through the review process, there were new lessons identified. This included having the insured’s internal and/or external legal counsels play a more active role in reviewing their customer contracts for their operations in various geographies to better manage their liability exposures.
Policy coverage and responsive service
We amended the policy coverage in response to the insured’s own customers’ demands. There was strong collaboration between the Australian and US brokers, the insured’s Australian management and US-based operations, as well as our underwriters in Australia and in the USA to address the coverage and demands of the insured’s customers.
Outcome
The broker and customer recognized and appreciated our team’s efforts and commitment to delivering value for the customer. There was also recognition and acknowledgement that the value our team brought was the advice on risk management and insurance coverage which were well beyond simply issuing local policies.
Feedback from the broker indicated that our teams’ integrated and collaborative approach, in particular the insight from the US-based underwriter demonstrated that Swiss Re Corporate Solutions is a trusted insurance partner for international programs.
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Vanessa Priede
