Hürlimann vows to maintain investment in skills and technology for Zurich’s global programmes offering

The development of its Multinational Insurance Proposition (MIP) caused something of a stir in the market a few years back now in what has become an increasingly competitive and high value part of the market. Some risk managers said the insurer had effectively turned global programmes and the compliance element in particular into an area for competitive advantage when it should not be so. Some rival insurers and brokers criticised Zurich for making too much public noise about an area that was best left under the radar and therefore hopefully out of the reach of tax collectors and nosy insurance supervisors.hideOthers in the market said that Zurich had instead taken a bold step and should be congratulated for attempting to publicly clear up some difficult topics that needed to be aired in public and tackled rather than brushed under the carpet. Regulators and tax collectors had become more interested in this area anyway as part of the desperate drive for revenue amongst cash-strapped governments worldwide. So why try and brush it under the carpet, they asked. Zurich stuck to its guns, worked through this period and has moved onto the front foot again now by playing a leading role in the development of the global programme database effort that is being led by Airmic, the UK's risk management association. But while this area may have grabbed many headlines in IPN and Commercial Risk Europe in recent times, Thomas Hürlimann, CEO of Zurich's Global Corporate, pointed out in an interview that this is by no means a new phenomenon. This is a long game. Zurich has played in this critical field for some time now and is prepared to continue its big investment in training and technology in particular to ensure that it remains the front runner in this area, he told IPN. For insurers the key challenge is not necessarily to convince customers that you understand the rules better than your rivals but to provide a superior service by managing the whole process as efficiently as possible, suggested Mr Hürlimann. "I have to say this is a journey that started in the mid 1970s and it involves a mindset, culture and acting as one team. It needs training and systems to provide global views, claims, risk engineering and cash flow management. All the pieces in the machinery have to work in a seamless fashion so we deliver the support and service that our customers require," he said. The insurance market is often criticised for failing to invest in its staff and thereby deliver the level of quality that customers need and want, particularly in the large corporate market. Global programmes is of course one area where the right choice of staff and ongoing training is essential as it is such a complex and fast moving area, not least because the insurance and tax rules in many territories can be so vague and open to interpretation. Mr Hürlimann insisted that his operation continues to invest in its staff to deliver the quality of service needed. "We have made a lot of investment in training. We have trained over 2,000 people in the international programme area, working in underwriting, risk, engineering, distribution and other areas and we have created our own certification which I hope grows the individuals and distinguishes them. There are over 2,000 people certified and trained globally in our group and this is an ongoing process to hopefully make us as seamless as we can be," said Mr Hürlimann. There is currently much talk in this market about cyber risk and the grave threats that it poses to all kinds of organisations and society as a whole. It is sometimes easy to forget, however, that technological developments, particularly in the area of communication, can add massive value to our business and personal lives. Thomas Hürlimann for one is very excited about the opportunities offered by new technologies in the complex world of global programmes. Zurich, for example, recently won industry awards for its Multinational Insurance Application (MIA), a tool designed to help customers centrally manage their international programmes. MIA is an online application, launched in 2006, that can help customers and brokers structure insurance programmes by using a database that contains information about the non-admitted insurance and premium-tax regulations in approximately 180 countries and territories for 41 lines of business. Mike Kerner, now CEO of Zurich's General Insurance business and previously CEO of Zurich's Global Corporate in North America said last year: "We're proud of the value we can provide to customers in terms of delivering greater regulatory certainty in the design of their insurance programmes." Mr Kerner added that one of the key components of the MIA database is that it helps risk managers answer complex questions about non-admitted insurance in a straightforward and structured way that is easy for them to understand. The insurer said that the application also helps customers align their multinational insurance programmes with applicable insurance regulations in countries where they have insured exposures. This is intended to give them greater 'certainty, peace of mind and confidence' that their claims will be handled should a loss occur, while avoiding potential sanctions and fines, said Zurich. Mr Hürlimann told IPN that this application had inevitably been extended to iPad and the result is 'truly amazing'. "For example imagine you have a property risk in New Zealand, then the insurer and the broker can issue a local policy and this can immediately include Difference in Conditions (DIC) and Difference in Limits (DIL)," he said. Asked whether such developments are, however, best shared rather than used as competitive advantage as noted above Mr Hürlimann was clear. "Compliance should not be used as competitive advantage and if we can make information publicly available so that the industry moves forward to be a better industry then everyone wins. This is why we have made it so easily available to all customers and brokers," he said.

Hürlimann vows to maintain investment in skills and technology for Zurich’s global programmes offering

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