ACE Provides Insights on Challenges and Solutions for Cross-Border Marine Insurance
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http://pdf.reuters.com/htmlnews/8knews.asp?i=43059c3bf0e37541&u=urn:newsml:reuters.com:20130320:nBw196801a http://www.businesswire.com/news/home/20130319006801/en SINGAPORE--(Business Wire)-- ACE Insurance, part of the ACE Group of insurance and reinsurance companies, recently released a report on Structuring Multinational Insurance Programmes for the marine markets. The report was jointly written by Suresh Krishnan, General Counsel for ACE`s Multinational Client Group and Kenneth McKenzie of DAC Beachcroft`s Global Group in London. In the report, ACE provides insights on the general principles which need to be considered when developing a multinational programme insuring marine risks. Here are some noteworthy extracts from the report. "Multinationals face different local laws and regulations in each of the jurisdictions in which they do business, across the entire range of their operations. Nevertheless, insureds want consistency of cover and certainty that the insurer will be able to pay the insured in the event of loss without tax or regulatory issues. Equally, the insurer wants to know that it will not be breaking any local requirements (including those relating to payment of insurance premium tax) by issuing cover to an insured in any given location." Given the challenges, "innovative insurers working with knowledgeable brokers have devised multinational models, usually featuring a master policy, conventionally bought by a multinational in its own home jurisdiction or from a leading insurance centre, which provides local cover and, where permitted, pays locally. This is combined with local policies in those countries where the master policy insurer: * has no presence; * is not licensed; * as an unlicensed insurer may not be able to pay a claim without the claim payment being questioned by local regulators; or * where there are adverse fiscal consequences to the local claimant, insured or local broker." "While marine insurance enjoys a substantial degree of exempt status from otherwise applicable compliance rules, the lack of convergence between international insurance markets and laws means that many issues must be reviewed on a country by country basis." The report ends with a useful checklist of questions for multinationals to consider: 1. May one policy insure all risks? 2. Are there different considerations as between Ocean Marine v. Inland Marine? 3. Do any of the participants to title in the cargo need local policies or Difference in Conditions / Difference in Limits (DIC/DIL) policies? 4. What about ancillary insurance coverage grants such as CAR-EAR covers? 5. To whom can the claim be paid? 6. Are reinsurance arrangements compliant? According to Mr. Krishnan and Mr. McKenzie, "In an increasingly globalized world, buyers, brokers and insurers need to give more careful consideration to compliance issues in marine insurance. As risks become increasingly complex, multinational clients will require insurance products with an innovative and sophisticated approach." Suresh Krishnan is based in New York, and has legal oversight for matters connected with ACE`s North American and international multinational products and services. He has co-authored multiple reports on the topic of multinational insurance programs, all of which are available at www.acegroup.com. ABOUT ACE The ACE Insurance franchise in Asia Pacific comprises an extensive network of operations serving Australia, Hong Kong, Indonesia, Korea, Macau, Malaysia, New Zealand, Philippines, Singapore, Taiwan, Thailand and Vietnam. The franchise offers a diverse range of products, including its core Property & Casualty and Accident & Health lines, as well as its growing Small to Medium Enterprise and Personal Lines businesses. ACE Insurance is part of the ACE Group, one of the world`s largest multiline property and casualty insurers. Headed by ACE Limited (NYSE: ACE), a component of the S&P 500 stock index, the ACE Group conducts its business on a worldwide basis with operating subsidiaries in more than 53 countries. Visit www.acegroup.com for more details. ACE Insurance, ACE Group of Companies and ACE Limited are registered trademarks of ACE Limited. Photos/Multimedia Gallery Available: http://www.businesswire.com/multimedia/home/20130319006801/en/ ACE Insurance Michele Anne Minjoot, +65 6398-8708 email@example.com Copyright Business Wire 2013
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