Editor’s comment – The tricky bit: getting subsidiaries on board

All of the above are potentially difficult and time-consuming, but perhaps the most contentious area is successfully promoting the global programme to subsidiaries.

In many parts of the world, relationships between local insureds and their local insurer (and indeed broker) can be very close, and intertwined. Where group’s decide to implement a centralised global programme, using a global insurer worldwide (where possible), there may be some resistance from subsidiaries, especially where previously they have had a high level of autonomy.

For the group risk manager, it is a question of selling the programme and its benefits. These might be cost, better terms and conditions, or higher limits. It may not, of course, work for everyone, and then it is a question of showing the benefits to the group as a whole. There is undoubtedly a role for global insurers and brokers to help risk managers “sell” the programme, explaining how it works, who benefits, and what those benefits are.

hide

It also means a lot of travelling for the group risk manager. A global programme is unlikely to work well if it is simply imposed from above. The group risk manager needs the subsidiaries to ‘buy-in’ the concept of a centralised global programme, literally and metaphorically.

If not, once claims come in, trouble will ensue. For group risk managers, the benefits of meeting subsidiaries and selling the programme to them, will mean not just a lot of air miles, but a much smoother running programme later on.

Back to top button