International insurance programs

Multinational corporations would like to control their insurance management worldwide based from the company´s headquarter. This requires a need for international insurance programs. These are usually a combination of local insurance contracts on the basis of "good local standard" and a master cover, which balances the requested insurance cover in terms of amount and conditions (difference in conditions DIC and difference in limits DIL).

The first step is to establish a coordinated international program for each division for all domestic risks and risks abroad. In addition, dependencies between your own companies, suppliers and customers must be taken into account and covered as best as possible - keywords in this context are retroactivity and interaction damage, recalls and supply chain.

Insurance cover for admitted or non-admitted-countries needs to be compliant, it is imperative to comply with national and international supervisory and tax laws that are essential for cross-border business activities. It is also necessary to check if a local service broker is required.

Within the European economic area, insurance coverage can also be provided within the scope of the FoS (Freedom of Services). This means from an Austrian perspective, no need to draw local policies.

Alternatively to the proposed solution, hedging of the "financial interest" of the parent company (i.e. the economic value of its stake in the subsidiary) is also possible. The initial thesis is that difference in limit and conditions coverage is not allowed in certain countries. It is replaced by a separate type of financial loss coverage, which replaces the reduction in the value of the investment by a loss event which is not or not sufficiently covered by the local policy and which would be covered by the master agreement.