Global insurance compliance

How can businesses address these compliance issues?
Solutions exist to address both regulatory and premium tax obligations created under global programs. Traditional methods of arranging for local policies to be issued, either as standalone placements in the local insurance market or as part of a coordinated program through a multinational insurer, in problematic jurisdictions are often the easiest approach. However, local market and/or global carrier limitations may not completely resolve all problems.
Alternative solutions include arranging for euro policies or petitioning local insurance regulators to approve the use of global programs where local market options are limited. Of course, each of these solutions can significantly increase the cost of any international program.
How seriously do businesses need to take the compliance of their global insurance programs?
Some may state that the issue of compliance is overblown. The lack of a significant level of case history does make reaching a clear consensus on the level of potential risk arising from noncompliance difficult. However, the situation is dynamic and no two companies will have the same view on compliance risk tolerance.
The level of regulatory and tax compliance in a global insurance program is an individual decision based around particular objectives and constraints for each firm, and there is no one-size-fits-all arrangement. There is no substitute for an in-depth discussion on the issues involved around compliance to help your company make informed decisions on the optimal program design. <<
Chris Gloriod is Global Client Network account executive at Aon Risk Services Central, Inc. Reach him at (314) 854-0775 or [email protected].