chubb multinational solutions february 2011. disclaimer the information in this presentation is...
TRANSCRIPT
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Chubb Multinational Solutions
February 2011
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Disclaimer
The information in this presentation is provided for illustrative and general information purposes only. The material presented is not, nor does it purport to be, a complete or exhaustive analysis of legal liability exposures or risks. The availability of insurance coverage depends on the particular facts and circumstances of any claim and the language of the policy as issued. Advice with respect to particular insurance needs or actual or potential legal liability must be obtained from your insurance broker or your lawyer. Actual breed of mite which caused loss may not be as pictured.
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Recent Headlines
The New York Times:Only 40% of American Companies have any type of
Travel Risk Management Program
Foreign Trade Council and World at Work:
64% of worldwide travelers develop some illness abroad and 1 in 30 travelers may require emergency care while traveling abroad.
The Economist:Kidnapping is on the rise around the world, largely
led by political unrest.
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Agenda
Introduction Capabilities Admitted vs. Non-Admitted Who needs “multinational insurance”? New Global Extension International Auto Foreign Voluntary Worker’s Comp International D&O Kidnap & Random Conclusion
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Chubb’s Global Network
Branch Offices in 29 countries
Affiliate relationships with 120 insurance companies in 100 countries.
Correspondent broker relationships in over 60 countries
Local underwriters, claims analysts, and loss control experts in more than 120 offices
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Correspondent Broker Services 100+ independent, full-service, multilingual agents Situated around the globe with ability to provide
information on local market requirements Provide international experience and local presence Act on instructions from controlling agent
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Proactive Loss Control
25% of Chubb’s loss control risk engineers are located outside North America
Leading edge of jurisdictional emerging issues and trends
Well-versed in local laws, regulatory requirements, building codes and international standards
Provided at no cost to the insured
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Admitted vs. Non-AdmittedAdmitted Coverage Non-Admitted Coverage
Written and issued by a company licensed to do business in the country where the risk is domiciled.
Country laws and legislation specify whether admitted insurance is a requirement.
In most foreign countries, premiums for admitted policies are tax deductible, and loss payments on local policies are considered non-taxable events.
Provides local certificates of insurance.
Gives insureds access to existing terrorism or cat pools (e.g. Cat Nat in France, Consorcio in Spain, and Pool Re in the UK).
May be more expensive.
Ability to allow insurer to subrogate.
Issued by a company not licensed to do business where the risk is located.
May be cost-effective.
Absolute control in the design of the policy and coverage terms.
Accelerated program implementation.
However: No access to government pools
Penalties of non-compliance may include monetary fines
Jail time related to non-admitted insurance in various third world countries has been reported (e.g. China)
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MasterKey Global Extension
Easy-to-apply policy endorsement that can be used with multiple liability product platforms
Advancements or Reimbursements
DIL/Excess and DIC Collectibility provision Currency provision
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Key Selling Points
Flexible rates that reflect unique legal and/or social climate
Fills gaps left by domestic-only policies
Provides a separate tower of liability limits
Protects the insured’s distribution network
Advances funds for defense
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Loss Scenario – Foreign GL
Our insured stored food products at a public warehouse in Rotterdam, Holland. The warehouse owner reported that there was an infestation of mites at the location caused by contaminated product that our insured placed in the storage facility.
Because of the infestation, all outgoing shipments were blocked by the owner.
Chubb claims determined that our insured’s product was the cause of the infestation and the claim settled for slightly less than $300,000 to pay for the infestation to other stored goods.
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Who Needs Multinational Insurance? Clients who generate
any revenues from sources outside Canada
Clients with employees traveling outside Canada
Clients with fixed assets outside Canada
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International Automobile Coverage DIC and Excess Liability
insurance up to $1,000,000 Requires that compulsory
automobile insurance be purchased locally
No compulsory self-insured liability retention required
Broad definition of covered automobiles
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Loss Scenario – International Auto
While visiting Ireland on a business trip, our insured borrowed a car from a colleague. While driving, our insured hit a house and killed a man.
The owner’s local policy declined the claim due to poor maintenance of the auto – the tire treads were too low.
Total loss exceeded $200,000.
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Foreign Voluntary Workers Comp Bodily injury by accident or
disease in the course of temporary foreign employment
Primary coverage provided for employees on a 24 hour basis
MEDEX travel assistance services included
No war or terrorism exclusion
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MEDEX Services Worldwide medical referrals Emergency medical evacuations Repatriation Assistance with the coordination
of rehabilitation after an evacuation
Arrangement of emergency medication, blood & vaccine transfers
Continuous updates to family, home physician &/or employer when appropriate
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Loss Scenario – FVWC
A U.S. Employee for a communications firm was in London, England for a business trip. While walking down the street, and not being familiar with the surroundings, the employee was looking in the wrong direction when hit by a bus.
The employee received immediate care and Chubb Claims set a reserve of $700,000.
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Admitted D&O Coverage
Locally issued limits up to $5M Canadian-issued policy acts as
a “global umbrella” sitting over the local underlying coverages
Aggregated deductibles and limits are available, where permitted
DIC/DIL cover fills potential coverage gaps
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Why a Multinational D & O Policy? Regulatory enforcements
of admitted requirements are on the rise
Executives sitting on international subsidiary boards require adequate protection
Canadian/US policy terms not always tailored for lawsuits brought abroad
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Kidnap/Ransom and Extortion Insurance
Financial protection in the event an organization suffers a kidnapping or other extortion loss.
Insurance provided for: Fees for independent
negotiators Rewards paid to informants Salary continuation Reasonable medical
expenses
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Loss Scenario
The owner of a family-run business was abducted while traveling overseas. The kidnappers demanded a $3 million ransom payment. A security consulting firm was immediately called in to deal with the situation.
The consultants negotiated a ransom of $625,000, delivered the payment, and recovered the victim unharmed. Total Loss was $675,000
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Top Five Reasons to Choose Chubb1. Collectibility Provision
2. Coinsurance Deficiency Up to Full Policy Limits
3. Foreign Voluntary Workers Compensation Insurance
4. Worldwide Services
5. Correspondent Broker Services