This document provides an overview of global insurance programs. It defines a global program as an insurance program intended for a multinational business that provides consistent coverage terms across the insured's global operations through coordinated policies. A global program typically involves a master policy that provides difference in conditions/limits coverage on a licensed, unlicensed, or financial interest basis. The document outlines two hypothetical cases of how coverage could work when the parent company and subsidiary are in different countries, one with financial interest coverage and one expressly excluding the subsidiary's country. It then provides a brief overview of how a global program is implemented through a controlled three-party approach involving the master insurer, local insurers, brokers, and clients.
4. BRUSSELS, 20-21 October
www.ferma.eu
FORUM 2015
Venice, Italy 4-7 October
•Extreme Hypothetical cases
•Parent company and policyholder is based in country A and the Subsidiary is
based in country B which is a non admitted country
Case One
1. DIC/DIL Master policy with a FIC applicable
to country B. Financial interest valued at a
sum equal to what would have been payable
if the subsidiary had cover under DIC/DIL
master T&C.
2. Policyholder allocates premiums to the
subsidiary.
3. In case of claim, the lost of adjuster in
country B, assess the lost of the subsidiary.
4. In case of a claim, the payment is made
directly from the insurer to the subsidiary or
the payment is made to the parent and the
parent sends the money to the subsidiary as
insurance claim recovery concept.
Case Two
1. DIC/DIL policy expressly excluding cover in
country B. FIC clause apart of the previous
exclusion covering the FI of the parent
arising from some specific losses in the
subsidiary. Even better, the Financial
Interest cover is given by an stand alone
policy instead of a clause in a DIC/DIL
master policy
2. Policyholder doesn’t allocate insurance
premiums to the subsidiary.
3. In case of a claim, the lost adjuster in
country A, asses the financial interest loss
of the parent arising from the loss in the
subsidiary.
4. In case of a claim, the insurer pay to the
Parent . The Parent doesn’t pay to the
subsidiary as insurance claim recovery
concept.
5. BRUSSELS, 20-21 October
www.ferma.eu
FORUM 2015
Venice, Italy 4-7 October
Don’t forget!
Your evaluation and comments are the only way for
FERMA to obtain information in order to improve the quality
of the sessions
• Please fill in the documents given to you by our
hostesses
Or
• Use the mobile application and earn points for the
Leaderboard game!
5