Clearing a Path for International Insurance Programs

Tips to ensure a company's multi-national risk management program meets compliance requirements

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Oct 31, 2013, 11:27 ET

KANSAS CITY, Mo., Oct. 31, 2013 /PRNewswire/ -- Doing business internationally is complex. In addition to each country having a set of laws and regulations, often industries will have additional rules and policies to follow. In the insurance industry, international compliance largely involves licensing requirements, taxes and financial issues, awareness of varying business practices, and a clear definition of an admitted insurer. A new report by Lockton explains the risks of non-compliance and offers tips to make a multi-national commercial insurance program complaint and effective.

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The report, authored by Lockton's Tim Higgins, is titled "Compliance: Myth or Achievable Dream?" Higgins explains how a company can make changes and additions to a master policy and local policies issued in other countries to ensure adequate coverage, especially in the event of a large claim.

"Despite structuring your policy around a predictable, normal pattern of losses, it is virtually impossible to predict how high those high losses might go," Higgins said. "But there are steps a company can take to minimize exposure to non-compliance, like adding a clause to a master policy, or mirroring policy wording in local policies."

When building a multi-national risk management program, Lockton recommends a company become familiar with compliance requirements and develop financial strategies that will meet its needs while also adhering to the rules and regulations of the countries in which they operate.

About Lockton
More than 4,450 professionals at Lockton provide 15,000 clients around the world with risk management, insurance, and employee benefits consulting services that improve their businesses. From its founding in 1966 in Kansas City, Missouri, Lockton has attracted entrepreneurial professionals who have driven its growth to become the largest privately held insurance broker in the world and 9th largest overall. Independent researcher Greenwich Associates has awarded Lockton its Service Excellence Award for risk management for large companies. For five consecutive years, Business Insurance has recognized Lockton as a "Best Place to Work in Insurance." To see the latest insights from Lockton's experts, check Lockton Market Update.

SOURCE Lockton