LONDON--(BUSINESS WIRE)--More than eight out of ten European companies expect to increase their use of multinational insurance programmes over the next three years as they become increasingly concerned about the risk management implications of their rising exposure to emerging markets, according to new research published today by ACE Group.
The survey of 280 risk managers across Europe, part of global insurer ACE’s ongoing series of European Risk Briefings, also points to heightened concerns about the growing complexity of international regulation and the impact of cross-border risk profiles on the companies’ loss experience.
Respondents also worry about the changing liabilities their multinational operations face. Four of the top six risks that they expect to create the greatest risk exposure for their multinational operation in three years’ time relate directly to liability issues. Cyber risk, which has a significant liability dimension ranks second. Environmental liability ranks third, underlining a growing awareness of new and emerging liabilities. Professional indemnity and directors and officers liability are also in the top six, highlighting the increased challenges for decision-makers in a globalised world.
Risk managers who took part in the survey see multinational programmes as a clear way to improve consistency and compliance. Over half (54%) believe multinational programmes improve the consistency of insurance arrangements, 52% cite improved regulatory compliance, and 36% better certainty of coverage as key benefits of these programmes. Close to a third of risk managers believe that multinational programmes allow them to make the claims process more efficient and more than a quarter that they can help them to control cost through economies of scale.
Andrew Kendrick, President, ACE European Group said:
“Achieving consistent, compliant insurance cover in this kind of environment is becoming more difficult under traditional approaches to insurance such as relying on a single global policy or a patchwork of uncoordinated local arrangements. A comprehensive multinational programme is usually a better solution. We at ACE recognise that every good multinational programme is the result of a close partnership between the client, their broker and insurer. We look forward to working with intermediaries and risk managers across Europe – and beyond – to meet their evolving needs.”
Service improvements are required
Risk managers that took part in the report state that they want more practical support from insurers to help manage multinational risks. According to the survey less than a third of risk managers are currently very satisfied with overall service levels on multinational programmes.
Key challenging aspects of managing a multinational programme that emerged from the survey are DIC/DIL implementation, local policy compliance, timely reporting and cross-border claims.
John Hurrell, Chief Executive, Airmic, the UK risk managers’ association, said:
“The findings of the survey chime with our own research. When it comes to multinational programmes our members place a lot of emphasis on compliance, documentation and good governance and of course on claims efficacy. We welcome the report and we hope that it should act as a valuable contribution to the debate as we try to establish better communication and expand awareness of the challenges that both insureds and insurers face in this ever changing, increasingly complex global environment.”
ENDS
About ACE:
ACE Group is one of the world’s largest multiline property and casualty insurers. With operations in 54 countries, ACE provides commercial and personal property and casualty insurance, personal accident and supplemental health insurance, reinsurance and life insurance to a diverse group of clients. ACE Limited, the parent company of the ACE Group, is listed on the New York Stock Exchange (NYSE: ACE) and is a component of the S&P 500 index.
Visit www.acegroup.com/eu
