Forms of global insurance program

Global carriers, e.g., AIG, FM Global, ACE and Zurich will write global programs and where they are not represented in a particular territory fronting can be arranged with a friendly licensed local company.

Global programs are either admitted and non-admitted.  An admitted program is one where policies are issued in all territories in which the organization operates. This can be cumbersome because of the number of documents issued, but legal because many countries do not allow unauthorized insurers to operate. Premiums are allowable expenses for tax purposes. The disadvantage is that standard coverage in many territories may not be adequate, i.e. some perils may not be covered, nor may the full level of indemnity required be available locally.

A non-admitted program has a global policy, covering all territories, issued in the parent’s domicile. This has the advantages of consistency in coverage, lower premiums through bulk buying and the opportunity for the parent organization to modify rating internally for good / bad risks. However,  this may not be legal in many territories. Premiums will not be tax deductible, and there may be problems with getting claims payments back into the country.

The way that many multi-national organizations get around this is to have a policy issued locally, in its standard form, and with minimum cover. A “master” policy is then issued to the parent giving wider and higher levels of cover. The “master” will exclude anything covered locally.

Insurance Definitions

For definitions of various forms of insurance refer to Insurance Marketplace

Insurance Sources

(General – Not necessarily accessible by TCIM)

Other Resources
  • Axco – Global insurance market information.
  • CIA Publications – A Central Intelligence Agency web site which includes useful information on all countries.
  • Foreign Affairs – Online guide to international affairs, offering indexed access to the leading journals in the field, capsule reviews of hundreds of new books, full text of source documents, and much more.
  • Global Edge

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