Editor’s comment – Do your homework
In particular, there was concern about what could be done if there wasn’t enough capacity in a particular jurisdiction for a particular risk – would non-admitted be allowed? The answer is that in such a situation, in virtually any jurisdiction in the world, you can apply to the regulator for an exemption.
But it was clear from experts at the Captive Forum that what often happens is that insurance managers don’t do their homework. It is no good having a local policy with relatively low limits and then a master policy on top, and hoping the regulator will simply allow this – a regulator is going to ask around his market to make sure. So it is no good applying for an exemption if it is clear that capacity does exist in the market. But if you can prove that the local market cannot provide the limits you are looking for, with documentation, then exemptions can, and are, provided by regulators.
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Be prepared. Do your homework. Have documentation ready. Otherwise, you will be disappointed.
This should of course be the mantra generally when it comes to multinational insurance programmes. If at all possible, take time to get it right. Multinational programmes are notoriously time-consuming, but cutting corners will only mean problems further down the line. Time spent on ensuring the programme will work, and in the way that it is intended, will save time when it comes to claims.
