Multinational businesses clearly have different insurance needs to develop markets, start production facilities, open global sales offices and establish international partnerships.

Insurance which is centrally managed and tailored to local regulations can give clients peace of mind. Such international programs (IPs) are cross-border insurance solutions for companies operating in a global business environment.

Companies that operate across borders and deal with multiple regulating bodies can be very challenging. If they acquire policies that were issued overseas, they may find these are not sufficient in terms of coverage and limits locally.

HDI Global is holding a 1-hour webinar on responsive international programs, to connect brokers and clients with its expert team. The event takes place on November 16 at 12 noon (AEDT). Click here to register.

“When a company reaches a certain size, the need to have a coordinated global program with master and underlying local policies in other countries is recognised,” said Rinnah Roque, HDI Global Service Delivery Manager Producing Office, IP.

Having a compliant insurance program gives clients the peace of mind that they are not seen as evading taxes or breaching local regulations in a country.

“Instead, they can focus on their business rather than worry about their insurance,” Ms Roque said.

Such a program is usually set up in the country where the producing office of the global insurer, and the parent company of the customer are situated.

IP insurers and brokers can optimise the architecture of the program, providing the breadth of cover and limits required by the business around the world and a coordinated claims experience.

Greater claims transparency on a global level

“Coordinating claims worldwide can really be stressful for clients if they need to do it by themselves,” says Ms Roque.

Global programs allow for a more coordinated approach where the claims process is simpler and more efficient at the master and local policy level.

“This is easier than arguing with different insurers as to whose policy is going to respond in the case of a claim,” Ms Roque explains.

Overall, businesses achieve greater transparency on a global level. “At HDI for example clients have a central point of contact for both the insured and the program broker,” Ms Roque said.

“They have local policies to cater for specific local needs including fast and efficient issuance through the use of Agreed Local Standard Wording.”

This means country specifics such as statutory regulations and tax law requirements are complied with.

With this coordinated local focus, companies only have to deal with one master policy which provides consistent global insurance cover.

“We can guarantee a uniform quality of delivery worldwide as each country’s performance is monitored against the service standards,” Ms Roque said.

Whilst claims are still handled locally, the process is controlled centrally and is a transparent process. HDI Global customers have access to a standardised reporting tool called IP-Web.

This gives customers the ability to control and manage their International Program anytime and anywhere in the world.

As regulations worldwide, particularly in Europe, become more demanding, it is even more important to make sure that companies have a truly compliant international insurance program.

“HDI Global is one of the largest insurers in the IP space,” says Ms Roque. “We lead approximately 5000 insurance programs in over 175 countries around the world together with partners and have experience in issuing around 23,000 local policies.”

About HDI Global SE Australia

The industrial lines insurer, which has been in the business of global programs for more than 60 years, works with a network of IP specialists who can service clients’ needs around the world.

HDI’s International insurance programs currently cover Property, Liability, Accident & Health, Marine, Engineering as well as D&O insurance through their Specialty business.