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  • ACE in the U.S. - A Leading Global Insurance Organization
    and emerging concern Not appreciating both tenets can result in consequences that are unexpected and costly Recent Noteworthy Enforcement Actions a India Challenges to Non Admitted Insurance A regulatory enforcement proceeding in India challenges the efficacy of a parent country policy in the context of whether local coverage was adequate In March 2011 following a fire that damaged a warehouse in India two years earlier the tax authority in India s Central Government announced that it would tax part of an insurance claim paid to the parent company a leading manufacturer of sporting goods headquartered in Germany According to The Wall Street Journal the parent company received about 20 million in claims payments from an insurer not admitted in India drawn from what appears to have been a global master policy The German parent s Indian subsidiary received about 10 million of the total drawn from what appears to be a local policy 1 The Indian subsidiary previously had informed India s tax authority that the claim paid to its parent company was not taxable in India for two reasons the master policy was taken out by the parent company outside India and the claim was paid outside India India s tax department subsequently launched an investigation The investigation unearthed a series of email exchanges between personnel of the parent company and the local subsidiary These emails indicated that although the insurance claim was paid outside India the payments were intended to benefit the Indian subsidiary As a result the tax authority recommended that the Indian subsidiary be taxed on the 20 million claim paid outside of India to its corporate parent It is noteworthy that while the non admitted insurer may not have carried on any class of insurance business in India marketing soliciting or issuing a policy in the country the emails alluding to the use of non admitted insurance offered the opportunity to the Indian tax authority to challenge the basic structure of the multinational insurance program By focusing on the local insured over which it has supervisory authority the Indian tax authority has defined the multinational insurance program not from the perspective of how the master policy was sold to the parent but from that of the local subsidiary which according to the enforcement action may have purchased non admitted insurance to insure its local risks The German multinational s insurance challenges with the Indian tax authority could easily be replicated in other jurisdictions A multinational enterprise when questioned by local regulators must be able to prove through contemporaneous documentation how a global insurance program excess of a local policy was purchased including which entities are directly insured by which policies how and to whom claims payments have been made and where appropriate taxes have been remitted Otherwise regulators may be able to easily redefine the entire transaction as a local purchase and impose applicable taxes fines and other penalties on the local affiliate b United States Improper Use of Independent Procurement Authorization Even in jurisdictions in which non admitted insurance is permitted however conditionally regulators have not hesitated to challenge what they see as abuses of the non admitted privilege be they from insurers insureds or brokers In the previous example the use of non admitted insurance and the regulatory impact on the local insured is addressed The message from the United States in this case New York State presents different implications for the global risk management community this case involves the use of a local insurance broker In Long Island New York according to press reports a family held insurance broker Waldorf Associates used independent procurement to improperly sell 30 billion of property casualty and other insurance policies issued by Lloyds of London to more than 300 Catholic universities and charities over a period of 15 years 2 Although New York State permits a local insured to independently procure insurance from an unlicensed insurer for a risk based in New York the placement of this insurance must take place in its entirety outside the state and not involve the services of a New York broker The law further requires the local insured not the broker to remit the appropriate premium tax to state authorities Had Lloyd s become financially impaired the insureds would have no financial recourse to New York State s insurance guaranty fund to cover any claims Additionally the policyholders were not informed that the independent procurement policies exposed the policyholders to the risk of unpaid taxes in New York State After an investigation the New York State Insurance Department fined Waldorf Associates 3 4 million and ordered it to pay back taxes on the policies which under New York State law were owed by the policyholders The Waldorf enforcement action reminds us that when an insurer is transacting the business of insurance in the jurisdiction where it is licensed in this case The United Kingdom and not at the location of risk in this case New York State the regulatory focus may enlarge to include the local broker and the local insured The compliance question is not only how the unlicensed insurer sold non admitted insurance but also because New York has direct jurisdiction over the local insured and the broker whether or not the non admitted insurance policy was procured to insure local risk in compliance with New York Law c Brazil Action Against Multinational Insurer In the previous two examples regulators exercised their discretion to go after local entities rather than the foreign insurer However in a recent enforcement proceeding in Brazil a large international insurer was charged with conducting business in that country without a license In October 2011 the Brazilian national insurance regulator Superintendencia de Seguros Privados SUSEP charged a Texas based insurer National Western Life Insurance Company with illegally selling life insurance in Brazil over a period of several years Unbeknownst to its Brazilian policyholders National Western which primarily sells life insurance policies and annuities did not have a Brazilian insurance license According to newspaper reports

    Original URL path: http://acegroup.acegroupaccess.com/ace-perspectives/multinational-risk/emerging-regulatory-challenge-to-non-admitted-insurance.aspx (2016-02-13)
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  • ACE in the U.S. - A Leading Global Insurance Organization
    Investor Information Media Center News Releases Media Contacts In the News ACE Perspectives Multinational Risk Structuring Global Insurance Programmes for Terrorism and Political Violence by Piers Gregory and Clive Hassett After more than a decade of highly visible international incidents it is unsurprising that obtaining insurance for terrorism and political violence has become a key imperative for risk managers of large multinational companies In fact recent research by ACE reveals that terrorism and political violence is the top emerging risk concern among businesses across Western Europe What may come as a surprise however is that losses from terrorism are still excluded from most standard commercial insurance policies and that fewer than 10 percent of those surveyed have dedicated insurance to specifically cover these risks Indeed ACE s research suggests that 15 percent of European companies are aware of the potential gaps and a further eight percent are aware but unsure how to obtain cover In addition around one in five believes terrorism and political violence risks are covered under one or more policies in their insurance programme although this may often not be the case in practice A primary reason for this coverage gap therefore appears to be a lack

    Original URL path: http://acegroup.acegroupaccess.com/ace-perspectives/multinational-risk/structuring-global-insurance-programmes-for-terrorism-political-violence.aspx (2016-02-13)
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  • ACE in the U.S. - A Leading Global Insurance Organization
    Home Auto Personal Property For Businesses Property Casualty Insurance Accident Health Insurance Life Insurance Reinsurance Small Mid Sized Companies Chubb Mobilassurance Perspectives Multinational Risk Environmental Risk Executive Risk Cyber Risk Specialized Risk Investor Information Media Center News Releases Media Contacts In the News ACE Perspectives Multinational Risk Structuring Multinational Insurance Programmes in Europe Intragroup Risk Financing Considering the Issues by Suresh Krishnan What do I need to consider when my insurer in Europe pays out a claim relating to a loss in another country where it is an unlicensed carrier Because every insurance policy is first and foremost a promise to pay in the event that the unexpected happens this is perhaps the single most important question for European risk managers to consider before structuring a multinational insurance programme Most insurers are licensed in their place of incorporation and may insure risks world wide However when it comes to paying claims only a few countries expressly permit an unlicensed insurer to pay claims directly in respect of risks located there In addition the majority of countries often impose significant burdens on local brokers and clients before a local risk can even be underwritten by an unlicensed carrier including the remittance

    Original URL path: http://acegroup.acegroupaccess.com/ace-perspectives/multinational-risk/2012-10-structuring-multinational-insurance-programmes-in-europe.aspx (2016-02-13)
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  • ACE in the U.S. - A Leading Global Insurance Organization
    Risk Executive Risk Cyber Risk Specialized Risk Investor Information Media Center News Releases Media Contacts In the News ACE Perspectives Multinational Risk When Risk Gets Personal Protecting Your Directors Officers Across Borders Executive Summary Understanding the personal exposures of directors and officers presents a particular challenge for multinational companies After all the extent of these individuals duties the range of potential lawsuits and the regulatory landscape vary widely from country to country First it is important to understand that a typical insurance policy for Directors and Officers D O insurance is actually a bundle of different coverages protecting distinct parties against different types of liability The first and most established type of coverage is a form of balance sheet protection that provides insurance to a company when it may indemnify its directors and officers for claims made against them But make no mistake This type of protection known as Side B insurance is intended for the company not its people In the 1990s the insurance markets introduced a new type of coverage for a company s exposure to securities litigation This Side C insurance is now a standard part of most D O policies But this is really another form

    Original URL path: http://acegroup.acegroupaccess.com/ace-perspectives/multinational-risk/protecting-your-directors-officers-across-borders.aspx (2016-02-13)
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  • ACE in the U.S. - A Leading Global Insurance Organization
    Vietnam WORLDWIDE For Individuals Families Life Insurance Accident Health Insurance Home Auto Personal Property For Businesses Property Casualty Insurance Accident Health Insurance Life Insurance Reinsurance Small Mid Sized Companies Chubb Mobilassurance Perspectives Multinational Risk Environmental Risk Executive Risk Cyber Risk Specialized Risk Investor Information Media Center News Releases Media Contacts In the News ACE Perspectives Multinational Risk Structuring Multinational Insurance Programs Cross border Challenges to Business Travel Personal Accident Insurance by Suresh Krishnan Sheena Shah Ronald Williams A corporate purchaser of a multinational business travel or personal accident insurance program has a few seemingly simple requirements Insurance coverage that responds to their specific local needs execution certainty with respect to benefits and claim payments and compliance certainty that the policy he or she purchases will stand up to scrutiny from both insurance regulators and tax authorities around the world However achieving all three objectives is not a simple task Uniform coverage and consistent treatment are difficult to achieve across a world of complex and sometimes onerous licensing and taxing requirements Nevertheless there are approaches to enterprise wide multinational business travel and personal accident programs that minimize compliance risk and maximize control over insurance coverage and benefit levels 2016 Chubb Terms

    Original URL path: http://acegroup.acegroupaccess.com/ace-perspectives/multinational-risk/ace-focuson-business-travel.aspx (2016-02-13)
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  • ACE in the U.S. - A Leading Global Insurance Organization
    broader coverage than that afforded in an ABC policy and is only called upon once the limits of the ABC policy have been eroded 5 Side A only policies can be a strategic tool for companies to both attract and retain directors and officers given that without adequate protection many talented individuals may be unwilling to undertake the enormous personal risk of managing or joining the board of a publicly traded entity let alone a multinational corporation whose shares may likewise be traded in multiple stock exchanges around the world The vast majority of stand alone Side A programmes have Differences in Condition DIC coverage and are commonly referred to as Side A DIC policies The DIC feature requires the Side A DIC insurer to drop down to pay covered Side A defence costs or indemnity payments if the terms of the more restrictive ABC policy exclude such Side A payments or if one of the underlying insurers is insolvent or otherwise refuses to pay a valid Side A claim within 60 days By way of illustration a corporation may purchase a single policy with 125 million in ABC coverage with a worldwide territory for both the parent company and its subsidiaries affiliates and joint ventures referred to collectively herein as affili ates followed by a dedicated stand alone Side A DIC insurance programme for 75 million in excess of 125 million also with a worldwide territory covering both the parent company and affiliates While this structure appears to satisfy the insurance goals of many clients there are certain execution risks as well as tax and regulatory risks which must be analyzed and addressed in order to ensure a materially compliant programme and a programme that can respond to claim activity anywhere in the world The key question when considering such a single policy with worldwide territory is whether local legal defence costs and indemnity payments may be paid in a country that severely restricts a local insured from purchasing unlicensed insurance to insure local risks or in which the insurer is not licensed to conduct the business of insurance A well constructed global D O insurance programme should take account of local law if the directors and officers are to be properly protected A recent New Zealand decision provides a striking example Following the collapse of the Bridgecorp Group the directors faced criminal charges and the threat of a NZ 400m claim by the receivers The directors had exhausted a NZ 2m defence costs only cover and the issue before the court was whether they could recover the rest of their costs under the NZ 20m D O cover issued in New Zealand The receivers objected pointing to a 1936 New Zealand statute which provides that on the happening of an event giving rise to a claim against the insured there is a charge over the insured s liability policy in favour of the claimant The receivers potential claim was large enough to exhaust the remaining limit of the D O insurance cover In September 2011 the New Zealand High Court ruled that the entire NZ 20m of D O policy monies were ring fenced for the benefit of the receivers even though they had not yet decided whether to pursue a claim against the directors and accordingly the policy could not pay the directors legal defence costs This decision has prompted local insurers to introduce separate limits for such defence costs a variation from traditional Side A insurance which insures both defence costs and indemnity payments While this is a unique situation New South Wales Australia has similar legislation which may now be tested As the recent New Zealand decision aptly demonstrates a multinational corporation must appreciate all of the risks that its directors and officers face in the jurisdictions in which it operates to ensure that its D O insurance will perform to expectations 6 A critical concern is whether a single D O multi national insurance policy which includes a worldwide territory can pay claims in all of the jurisdictions where the insured operates and directors and officers suffer loss As explained directly below the sole concern in this respect is Side A claim payments because the insurable interest concept wholly applies to Side B and Side C claim payments III Considering Insurable Interest When Structuring Multinational Insurance Programmes in Countries That Restrict Unlicensed Insurance Multinational corporations are generally governed in a way that permits them to operate as seamlessly as possible across national borders creating synergies that lead to more competitive pricing innovation and profit It is no wonder that these corporations prefer to take the same approach to structuring their D O insurance programmes Instead of having each affiliate negotiate its own policy in its own jurisdiction there is often a centralized effort to efficiently achieve the best terms and conditions and price Indeed the majority of multinational corporations employ risk managers located at the parent level whose main responsibility is to negotiate and administer insurance programmes that provide coverage for the parent company as well as its affiliates and directors officers and employees at both the parent and affiliate levels National insurance regulations governing the purchase of insurance policies create a challenge for multinational organizations seeking to insure such risks in a consistent and cost effective manner 7 However a multinational D O insurance pro gramme may be designed in a way that satisfies the need for consistent coverage and limits for an organization s worldwide operations and that exhibits deference to the tax and regulatory requirements in each country A key question that needs to be addressed is whether D O insurance policies purchased to provide worldwide insurance protection can deliver this protection The master policy arranged by the parent may be able to cover some of its foreign subsidiaries for example an ABC D O insurance policy purchased by a British parent company from an insurer licensed only in the UK can legitimately cover subsidiaries elsewhere in the EU 8 It can a fill coverage gaps in local policies with inclusion of Difference in Conditions DIC and b provide consistent limits with inclusion of Difference in Limits DIL But could this same policy directly indemnify the parent company s Indian affiliate or the affiliate s local directors or officers for the local legal defence costs incurred and any settlement or judgment when they are sued in India for a loss in India 1 Insurable Interest A parent company has a financial or economic interest in its affiliates through its shareholding or other ownership interest or perhaps via legal or contractual obligations In the United States most major countries in the European Union including the United Kingdom France and Germany Switzerland Mexico and Brazil as well as in Australia and most countries in Asia including Singapore and Hong Kong financial or economic interest is insurable and the parent company may procure insurance directly for its insurable interest in such entities This parent policy can supplement the local policies arranged by subsidiaries offering the parent company DIC DIL cover In many countries under such a parent policy the parent s economic loss is measured by reference to the affiliates actual losses essentially a form of agreed value policy In other words if an affiliate suffers a loss the parent company can be deemed to suffer a concomitant loss because both the affiliate and parent company are part of the same corporate organization and ultimate financial statement 9 A key question that needs to be addressed is whether D O insurance policies purchased to provide worldwide insurance protection can deliver this protection A company s affiliates may well arrange local policies in the countries where they are based especially in jurisdictions that mandate particular coverages prohibit non admitted insurance or place an onerous process on a local insured or local broker procuring non admitted insurance A locally admitted insurer will underwrite and issue the local policy complying with the local insurance laws and will calculate and remit the applicable insurance taxes and fees Claims under such local policies will be adjusted and paid locally This solution a combination of local policies and a master policy covering the insurable interests of the parent company provides structural protections for insurers producers and multinational enterprises against issuing soliciting and procuring insurance as the case may be in jurisdictions that prohibit non admitted insurance Such a solution also addresses related premium tax liability in such jurisdictions In particular all premiums in respect of the master policy may be allocated to the parent and its affiliates in jurisdictions where non admitted insurance is permitted and premiums on permitted local policies may be allocated to the appropriate affiliate in the relevant jurisdictions Because this solution clearly identifies the jurisdictions in which the insurance is being provided it is easier to identify the amount and allocation of premium taxes and other charges and fees among the insurer the producer and the insureds Moreover any claims under the parent policy could be paid to the parent in the parent s jurisdiction or in jurisdictions where the insurer is licensed IV Applying Insurable Interest to D O Policies Against this backdrop the next step is to analyze the various components of an ABC D O insurance programme to ascertain whether the insurable interest concept is applicable to certain or all of the coverage grants The parent corporation certainly has an insurable interest in the impact on the value of its holding when its subsidiaries are faced with securities litigation Accordingly it is able to arrange its own Side C coverage which is in itself a form of corporate asset protection Likewise the same holds true for Side B insurance which indemnifies the corporate entity for the loss incurred by its obligation to indemnify its directors and officers This is another form of balance sheet protection The fact that the loss is incurred through the affiliate indemnifying its directors and officers as opposed to defending and settling claims against itself is immaterial A parent company possesses an insurable interest in its affiliates obligations and may therefore purchase Side B and Side C insurance for itself where in addition to any insurance purchased by the local affiliate the parent may have a legal or contractual obligation to reimburse the affiliate for those amounts in excess of the limits or for conditions that may not be insured by the policy purchased by the local affiliate Irrespective of such an obligation a parent company has an insurable interest in the value of its holding in its affiliates because all losses incurred by the affiliates potentially impact the parent company s financial statements Side A insurance is a different kettle of fish Although it is customary for a corporation to purchase Side A insurance for its directors and officers the Side A policy is providing personal asset protection for individual directors and officers against claims that are not indemnified by the corporate entity Accordingly by definition the corporation has not suffered a loss and is not indemnifying anyone for the Side A loss Rather the insurer pays the legal defence costs and any indemnity payments to or on behalf of the director or officer often in the jurisdiction where they are personally subject to the lawsuit A parent cannot have an insurable interest in amounts that its affiliate is not legally or contractually obligated to pay let alone amounts that its affiliate cannot as a matter of law pay Those are liabilities of the individuals and the insurable interest concept may not extend beyond the corporate financial statement This means that Side A personal asset protection insurance purchased on a worldwide coverage and territory basis may not be able to respond locally in all instances when coverage is triggered under the terms of the master policy purchased by the parent company Local Side A policies should respond locally and where an excess Side A DIC DIL policy is underwritten and issued outside the jurisdiction concerned the insurer may pay a covered claim in the jurisdictions where it is licensed or subject to any restrictions on the local broker and client may pay a covered claim in jurisdictions where the loss occurs and that permits unlicensed insurers to provide this insurance Drawing these threads together a multinational enterprise has a variety of means of addressing the regulatory and tax challenges in jurisdictions that prohibit non admitted insurance or impose arduous conditions on brokers and insureds that use it Its local affiliates may purchase a local ABC policy in such jurisdictions This addresses any concerns that local regulators would have with purchasing insurance from an unlicensed insurer One shortcoming to this approach is that the policy limits may be eroded by Side B or Side C payments and the individual directors and officers could be left with no policy limits for Side A claims For this reason some multinational enterprises purchase locally both an ABC policy and a stand alone Side A policy that insures losses excess of the ABC policy This addresses the concern that the more frequent Side B or Side C claim payments could erode the total limits available before the individual directors and officers are in a position to claim under the policy However a potential shortcoming with this approach is that the locally admitted ABC and or Side A policies may have more restrictive terms and conditions and or lower limits than the master policy To address the difference in conditions DIC and difference in limits DIL issues many multinational enterprises will include a DIC DIL provision in the master policy which provides that the master policy will respond in the event that the local policy contains more restrictive terms and conditions or a lower policy limit The master policy would typically be purchased by the parent company in the parent s jurisdiction Where affiliates are in countries that allow them to arrange cover with non admitted insurers abroad without imposing burdensome requirements they too can have ABC insurance under the master policy In other cases the master policy should expressly exclude coverage of the affiliates concerned and it can instead provide Side B and Side C insurance to the parent itself in respect of its interests in its affiliates Side A insurance cannot be provided to the parent company in these circumstances because the parent does not have an insurable interest in claims made against its affiliate s directors and officers Such Side A coverage may be provided by an insurer licensed in the territory concerned or where this is not prohibited locally by a foreign insurer that is not licensed there Under this final scenario the master policy could insure the parent company s insurable interest in the legal and contractual obligations reflected by the local Side B and Side C coverage grants of the excluded subsidiaries affiliates and joint ventures consistent with the laws of the parent company s domicile 10 However certificates of insurance is sued in jurisdictions where the master policy in surer is not licensed or where non admitted insurance is prohibited may only reflect the terms conditions and limits of the local policy and may not include those of the master policy Although the intent of the multinational enterprise and the insurer is to purchase a global D O insurance programme local policies and master DIC DIL policy with one global programme aggregate limit one of the key challenges faced by insurers is effectively controlling the aggregation and stacking of local limits potentially to the insurer s detriment In order to mitigate this potentially adverse result insurers should consider an endorsement or a provision in local policies subjecting the local policy limit to the global programme aggregate limit In addition or alternatively insurers should also consider a deed of indemnity or a parental guarantee that reimburses the insurer for any amount paid by the insurer in excess of the programme aggregate limit Side A personal asset protection insurance purchased on a worldwide coverage and territory basis may not be able to respond locally in all instances when coverage is triggered under the terms of the master policy purchased by the parent company In substance this solution may provide the coverage and terms that satisfy the participants in the multinational programme while mitigating execution uncertainty or the risk of unauthorized insurance penalties in local jurisdictions Through inter company allocations and appropriate trans fer pricing documentation based on the actual experience of the multinational enterprise the costs and benefits of the global insurance programme may be allocated to the appropriate entities in a transparent and materially compliant manner 11 V Checklist Beforeunderwritingandbindingamultinational D O insurance programme participants in the programme should consider a check list such as the following which recommends a bottom up approach focusing on requirements for local policies as well as a top down approach that ensures potential gaps in those local policies are covered by an excess DIC and or DIL policy a What are the conditions imposed by a local jurisdiction for an affiliate to insure D O liabilities i If insurance is arranged must it be issued by a locally licensed insurance company ii Are there circumstances in which risks can be insured by an unlicensed insurer b If only local insurance is allowed does it provide the expected coverage i Is the local policy tailored to insure the local affiliate s reimbursement obligations under Side B and Side C ii Is a Difference in Conditions DIC master policy needed to insure gaps in the local Side B and Side C policy iii Do local directors want a stand alone Side A policy that is tailored to insure them locally for non indemnifiable acts c If only local insurance is allowed does it provide the expected limits locally i Are the local policy limits adequate to insure the local affiliate s reimbursement obligations under Side B and Side C ii Is a Difference in Limits DIL master policy needed to insure gaps in the

    Original URL path: http://acegroup.acegroupaccess.com/ace-perspectives/multinational-risk/cross-border-challenges-to-side-a-directors-officers-liability-insurance.aspx (2016-02-13)
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  • ACE in the U.S. - A Leading Global Insurance Organization
    Finland France Germany Gibraltar Hungary Ireland Italy Luxembourg Netherlands Norway Poland Portugal Russia Life Russia Non Life Spain Sweden Switzerland Turkey United Kingdom Asia Pacific Australia China Hong Kong India Indonesia Japan Korea Life Korea Non Life Macao Malaysia New Zealand Philippines Singapore Taiwan Life Taiwan Non Life Thailand Vietnam WORLDWIDE For Individuals Families Life Insurance Accident Health Insurance Home Auto Personal Property For Businesses Property Casualty Insurance Accident Health Insurance Life Insurance Reinsurance Small Mid Sized Companies Chubb Mobilassurance Perspectives Multinational Risk Environmental Risk Executive Risk Cyber Risk Specialized Risk Investor Information Media Center News Releases Media Contacts In the News ACE Perspectives Multinational Risk Captive Review Global Programmes Report 2012 In order to discuss expanding global programmes and the intricacies that come with them Andrew Kendrick chairman of ACE European Group sat down with Captive Review for a one on one on the fast evolving industry 2016 Chubb Terms of Use Licensing Information Privacy Statement View Mobile Page STAY UP TO DATE WITH US Sitemap HOME For Individuals Families Life Insurance Accident Health Insurance Home Auto Personal Property Insurance For Businesses Property Casualty Insurance Accident Health Insurance Life Insurance Reinsurance Small Mid sized Enterprises ACE Perspectives Multinational Risk

    Original URL path: http://acegroup.acegroupaccess.com/ace-perspectives/multinational-risk/captive-review-global-programmes-report-2012.aspx (2016-02-13)
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  • ACE in the U.S. - A Leading Global Insurance Organization
    Insurance Reinsurance Small Mid Sized Companies Chubb Mobilassurance Perspectives Multinational Risk Environmental Risk Executive Risk Cyber Risk Specialized Risk Investor Information Media Center News Releases Media Contacts In the News ACE Perspectives Multinational Risk Structuring Multinational Insurance Programs Insights into Cross Border Insurance Regulation in Canada by Suresh Krishnan Fernand Vartanian The international risk management community is eager to understand how to buy insurance seamlessly cost effectively and in a compliant manner for multinational enterprises with risks in Canada Companies insurers and insurance brokers may be subject to taxes or penalties if they fail to consider the country s two tier regulatory scheme which includes federal taxing authority and an array of different insurance regulations in the provinces and territories While Canada is unique in some respects its regulations are not all that different from other places around the world including states and territories of the United States The key to successfully structuring and implementing global insurance programs with Canadian exposures is to recognize the regulatory perspective of each province where risks are located Various consequences some intended and others unintended could result depending on how the insurance transaction is structured and implemented When developing a global insurance strategy multinational

    Original URL path: http://acegroup.acegroupaccess.com/ace-perspectives/multinational-risk/insights-into-cross-border-insurance-regulation-in-canada.aspx (2016-02-13)
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