Suresh Krishnan, Head of Global Accounts Division, Europe at Chubb assesses what risk managers and insurance buyers need to look for from their insurance brokers and insurance carriers to provide meaningful solutions as they consider tomorrow’s multinational environment.
Brexit has dominated the UK’s political, economic and business agenda ever since last June’s historic referendum result. However, almost a year on since the country’s electorate voted to leave the European Union, we’re not sure any of us understand yet what it will ultimately bring.
What we can say with some clarity, though, is that to be successful in a post-Brexit world, UK based corporations must be open for business to a wider range of markets than ever. With a greater multinational footprint, of course, come new and arguably heightened risks. And the ability to understand and manage these multinational risks will become increasingly important (particularly when companies are expanding in lesser-known or emerging markets).
As such, businesses will need to choose insurance brokers and carriers who really “get” multinational challenges and live and breathe pursuing meaningful solutions. Is the market up to it? The answer, we believe, is both yes and no. Today, many in the market appear to give the impression that they are a multinational expert, even if they have no meaningful specialist expertise or worldwide presence.
So what will clients need to look for from their brokers and insurance carriers to provide meaningful multinational solutions? At Chubb, we believe there are five “pillars” that risk managers and insurance buyers must have on their checklist as they consider tomorrow’s multinational environment. All of these we consider fundamentally important to the successful management of multinational risks:
It all begins with people. A talented team with demonstrable in-depth experience is key to managing multinational risks in whatever form they might take. Chubb has teams across four continents who are dedicated to underwriting and servicing global programmes for multinational business. With expertise in relationship management, underwriting, risk engineering, claims, service and detailed product and subject matter knowledge, we are fully focused on equipping our clients with the right tools and understanding to tackle the complexity of multinational risk.
Companies operating on a cross-border basis need the solid backing of a dependable insurance partner with a global reach, local knowledge and financial stability. Yet not all insurance partners touting multinational solutions can actually offer this. As the world’s largest publicly-traded property and casualty insurer with US $160 billion in assets, we have 54 Chubb-owned offices around the world that currently serve 75% of our local policy needs, and our network presence spans almost 150 more with dedicated contacts promoting a consistent and transparent approach.
Off-the-shelf products are simply not effective enough, particularly in a multinational context. Clients need partners with the capability to craft singular solutions that fit an individual company’s profile, tailored precisely to its specific needs. To do this successfully requires a combination of core multinational lines such as property, liability, marine and financial lines and specialty multinational underwriting capability—for lines such as accident and health, cyber, environmental liability and terrorism. In addition, combined with our technological capabilities, we offer leading edge solutions for captive programmes and management of large local deductibles.
Increasingly, risk managers and their stakeholders want to understand the status of their insurance programmes in real time and technology from insurance partners must help them to achieve that. Chubb, for example, offers a range of leading-edge technology-driven solutions for multinational programmes. We continue to invest in our award-winning Worldview multinational portal which has transformed programme management for the complex insurance needs of multinational clients. Worldcert is an interactive clinical trial insurance and certificate management system automating the entire process, while Travel Smart helps employers prepare travelling employees before a business trip and locate them when they are abroad.
From risk engineering in emerging markets, to claims settling across borders, having the right support is absolutely critical for companies if they are to manage complex multinational risks. At Chubb, multinational claims and risk engineering are key factors for success. We have over 280 dedicated multinational claims handlers across 42 countries and a network of over 400 risk engineering experts. Chubb Global Services comprises a dedicated team of more than 400 insurance professionals working across key functions including local policies, fees and taxation and multinational compliance research. In addition, we partner with global incident response experts on certain key risks to offer 24/7 assistance and support for a wide variety of situations.
At Chubb, we consider these five “pillars” to be crucial to support and underpin the success of any multinational programme. These are key aspects where we continue to invest as we work to support risk managers, insurance buyers and their businesses in a post-Brexit world.
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