Global programs are possibly the single most important insurance innovation in recent years for mid-sized businesses operating in more than one jurisdiction.
The fundamental advantage of a global policy is the ability to consolidate the insurance cover across territories. A correctly arranged portfolio will tick many boxes: centralised control for governance responsibilities, competitive premiums, risk management, avoidance of duplication, uniformity of cover, and often, superior policy cover and higher standing with insurers.
In general there are three approaches to managing insurance risks outside the UK or home country. For all modern programmes a Global Network is essential for effective operation.
Locally Controlled/Admitted
A locally controlled approach allows for local subsidiaries to control all aspects of the insurance.
Non-Admitted – Foreign DIC/DIL Policy
Once a company starts to expand internationally, it is increasingly common and desirable as a first step to purchase a Foreign Difference in Conditions (DIC)/Difference in Limits (DIL) policy.
Master Controlled
The preferred approach for companies with a major presence outside of the UK is to purchase a Master Controlled Program.
Global Network Operations
Consolidating through a single Broker Network is essential for an efficient administration of a global program.