Businesses that have multinational operations are exposed to unfamiliar obstacles and unforeseen risk. When it came to insuring one of the world’s largest beverage producers with operations and distribution networks in 20 countries, RSA worked collaboratively with our broker partners and customer to ensure appropriate coverage and a seamless experience.
“At RSA Canada, our professionals offer in-depth knowledge of territory-specific issues, markets and industry complexities in every corner of the globe,” says Colette Taylor, Vice President Specialty Lines. “Compliance with local authority and regulation, and the responsibility you have towards employees, vary from market to market, and navigating these differences can be a complex process.”
Some of our guiding principles for multinational insurance programs are flexibility and collaboration.
“Our specialty underwriters, risk engineers and claims staff at RSA understand that a one-size-fit-all solution will not work for large commercial clients,” says Taylor. “We also recognize the critical importance of a tripartite relationship between us, the broker and the customer – as well as a collaborative spirit with other external partners.”
Meeting local insurance requirements
For this beverage producer, we offered property and equipment breakdown insurance. Given that the majority of this client’s exposure is in the US, RSA provided coverage for their US operations and offered the client $400 million capacity.
“We also offer flexibility on our large specialty accounts to use manuscript wording custom-tailored to the needs and global requirements of our clients,” explains Alan Sasaki, Underwriting Specialist, Property Insurance. “And in this case, we were able to meet the client’s request to do so.”
Because this customer also has global operations, with corporate offices and/or production facilities in North America, Europe and the Middle East, we worked closely with the broker and the client to ensure they were properly covered for local requirements.
RSA Canada has one of the leading global networks in the insurance industry, spanning more than 150 countries and territories. For this customer, we leveraged our fronting capabilities which allows our global network to issue locally admitted papers to comply with local regulatory requirements. This arrangement means there is one master policy in place, which makes administration easier for the broker and the customer. For example, in the event of a claim in a foreign jurisdiction, the claim would be settled according to the local policy issued. However, should there be a gap in coverage or shortfall in limit of liability, RSA would respond for the difference in cover (DIC) or difference in limit (DIL) provided by the master policy issued in Canada. If there were multiple policies in place, each policy could respond differently to the claim, whereas the fronting arrangement avoids claims disputes at a local level.
“We helped guide this customer through questions such as, what are the local policy requirements and what are tax implications in the countries in which they operate?” said Tania Abreo, Senior Underwriter, Global Risk and Multinational Programs. “The consequences of not getting it right means the customer could face fines, penalties or even jail time – so we ensured the proper due diligence was conducted in collaboration with our global network to get it right and put the customer’s mind at ease.”
Collaborative risk control approach
When it comes to risk control, engineers at RSA also take our principles of flexibility and collaboration to heart to ensure the best interests of the customer are central to their insurance program..
To appropriately underwrite this beverage account, our risk engineers worked closely with our underwriting team to apply a disciplined approach to risk assessment and prevention. This helped ensure the customer was protected for property loss exposure unique to their beverage production operations.
“We strive to be open and collaborative with our risk control method,” explains Greg Gribbon, Senior Risk Specialist. “When we are lead underwriter on an account, we provide our risk improvement report and other engineering information to other carriers on the account to ensure a coordinated approach to risk control. This mindset is put into practice for all our multinational accounts.”
Fair and rapid claims process
For large multinational customers, we offer a customized claims management program and a dedicated claims relationship manager. Our tailored solution is focused on fair and efficient resolutions aligned with our clients’ risk management strategies, which includes our global capabilities to make local payment of claims—rapid movement of money wherever the business is located.
“Our project-managed approach to large complex losses and ability to facilitate the movement of money quickly was a relief to this large beverage producer when they experienced a loss in a US state,” explains Ryan Jones, Claims Relationship Manager.
Through our project-managed philosophy, key claims personnel are engaged at site level to allow for peace of mind when critical decisions must be made to mitigate the impacts of any loss; this approach can be supported with interim payments (which can be wired immediately to our insureds) to lessen the burden of a loss to our business partners. In Canada and the US, our claims examiners are strategically positioned to provide local expertise when a loss occurs.
For all multinational customers, we strive to provide a customized approach to service for every risk and level of complexity.
Disclaimer: It should be noted that the related underwriting, risk control or claims outcomes in the article are not a guarantee of future outcomes.