European companies fear rise in business travel risk and non-compliant cover

It seems that compliant insurance cover is of particular concern, with 65% of larger companies and 71% of mid-sized companies admitting they are worried about the regulatory and tax consequences. The research, built on responses from over 600 companies in the UK, France, Germany, Benelux, Italy and Spain, also finds that one third of companies are not satisfied with the way their business travel claims are handled by their insurer. ACE said the increasingly globalised business environment is driving heightened concern about business travel risk among European companies.hideFears over compliance are in line with an increasingly proactive approach on the part of many national supervisors and enforcement authorities, it added. However, ACE's research also suggests that businesses in some parts of Europe may be less aware of the compliance risks. UK companies are most likely to be concerned (85%), followed closely by Spain (82%). The proportion drops in the Benelux region (67%), Germany (64%), Italy (60%) and France (50%). Jeff Dowling, Chief Underwriting Officer, Accident & Health for UK and Ireland at ACE, said: "Traditionally, companies have tended to put in place one single insurance policy to cover their business travel globally. However, this might not always be the best or most compliant approach. Whether or not a claim for medical expenses can be paid to a European employee who falls ill in an emerging market where the insurer is unlicensed, for example, will depend on local laws." Sixty-seven per cent of European companies surveyed say that they are currently satisfied with the way their business travel claims are handled by their insurer, meaning the remaining third are not. The level of satisfaction varies widely by country. In the UK, almost 90% of respondents say that they are happy with the claims process but this proportion falls to 58% in Germany and 52% in France. The research also highlights that new business travel 'claims hotspots' are developing as European companies build their overseas revenues. Over half of European companies identify either 'Asia and Australasia' (27%) or 'South America' (27%) as the regions most likely to generate an insurance claim from their own experience. By comparison, western Europe is rated a claims hotspot by fewer than 5% of companies. "Our research suggests that Asia, Australasia and South America are becoming the business travel 'claims hotspots' for European companies. With the shift to emerging markets gathering pace, we expect this trend to continue. At ACE, we are already seeing increased interest from clients in working with a global insurer to develop more comprehensive multinational programmes that reflect their specific exposures and give reassurance that the policy will perform when their employees most need it," said Mr Dowling. ACE's research is based on interviews with 606 risk managers, chief risk officers, chief financial officers, chief operating officers and other people responsible for buying insurance at European companies with a turnover of over £500m.

European companies fear rise in business travel risk and non-compliant cover

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