Recently Commercial Risk published the article '10 factors in choosing an insurer for a global insurance program'. This article supports the risk manager in choosing the right insurer for a multinational program. As an insurer, we would like to share our vision upon this. For this reason, we have drawn up five main principles that we comply in our multinational programs.
Wherever your business takes you in today’s rapidly expanding world, AIG helps clients managing risks with confidence -keeping the clients’ organisation safe, compliant, and protected across borders. Our multinational team understands regulatory realities, capital, and tax concerns around the world —and also exposures, coverage and proof of insurance needs, wherever the client on the globe operates. Therefore, expertise that goes beyond borders, is a requirement for a sustainable and trustworthy multinational program.
AIG Multinational is leading the way serving clients in more than 200 countries and jurisdictions. This way we build the right multinational program that is compliant in all the territories of the insured. The benefit of a broad international network is that we have more control over the service towards our clients; such as making sure policies are issued correctly, more consistent and reliable. Besides that, we are able to provide a sustainable service and local claims support when the insured needs it the most.
The world is changing rapidly and we as AIG go along with these changes. This needs an innovative approach, or in other words a: 21st century leadership in multinational program design. With streamlined, technology-enabled processes we try to make our clients’ experience seamless, while robust reporting keeps the client abreast of all aspects of their programme. Today, it is a must-have to provide tools that support the buyer when considering a multinational program and when they are insured. This simpler and more consistent execution of multinational business is how we aim to deliver contract certainty and governance the insured can rely on around the world.
To make well informed insurance decisions AIG provides three tools:
2. Multinational Programme Design Tool
This interactive tool makes it easy for the buyer to systematically evaluate their multinational insurance needs—from compliance to claims handling.
3. myAIG Client Portal
This comprehensive system provides access to all multinational program details and robust business intelligence.
AIG Multinational is able to issue controlled master programmes (CMP). CMPs offer the benefit of both a single global policy and multiple local policies tailored to match client’s local requirements. A master policy covers multiple territories and provides consistent coverage and limits. This is underpinned by local issued policies for each country, which mean local premium payments, local claims handling, local compliance and local certification.
A CMP program knows its own challenges. Nevertheless, AIG Multinational deals with the complexity of a CMP through effective Program Management based on three principles. Firstly we formulate a standardization of what, when and how AIG delivers. Secondly we align the broker, client and AIG on CMP deliverables and lastly we establish parallel communication to local country stakeholders – local brokers, clients’ local operations and the local AIG Global Network offices.
We believe that each client is unique. Therefore we strive for a tailor made approach in structuring multinational programmes and allocate premium. We combine clients’ specific exposures with their multinational knowledge, expertise and capabilities to make sure clients can make informed decisions. We handle three key principles of premium allocation;
· The premium always reflects the risk presented by the individual territory
· The offer must meet local tariff requirements and satisfy local minimum premium requirements.
· The agreed premium allocation should be achieved ideally before the policy incepts or renews.
Becoming a victim of a loss involves a moment of uncertainty and doubt. For this reason, the security of an insurer is of great importance to an insured. When choosing an insurer, the multinational insurance company must be able to handle claims quickly and efficiently. To ensure a prompt payment of claims, AIG pays claims in-country and in local currencies worldwide. In the case of a catastrophic moment, the insured needs a quick local response with centralised coordination; anywhere and anytime. In the case of a loss and in order to receive immediately a fast service, we provide technical claim specialists who are located in the market and can be deployed within hours of notice. This way we ensure hand-deliver advances after catastrophic events, arrange immediate medical treatment, or secure emergency evacuations. What’s more, multinational clients can customise their claim handling instructions to ensure consistent protocols across their locations.