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Growth of a company, in headcount or revenue, is often an indicator of a business operating successfully. Expansion into offshore markets is another positive sign, however operating in multiple countries comes with extra complexity too. To remain protected, global businesses need to ensure they’re compliant in all countries, contractually with relevant vendors, and local legislative frameworks too.
To support businesses with an efficient and truly ‘globally-fit’ approach to risk-mitigation, Multinational Controlled Master Insurance Programs can be established and managed from the country where the parent company is located.
MCMIPs offer businesses greater visibility into, and greater control over what policies and what level of coverage they have in place per country.
The Controlling Broker manages the entire Program portfolio, including the establishment of insurances in line with the business’s parent company requirements, and those of its subsidiaries. The Controlling Broker then places the policies with an insurer who has multinational capabilities in the countries relevant to the business’s international trading particulars.
Because insurers are not permitted to directly issue policies and invoices to the insureds, another insurance broker known as a Servicing Broker is required in each country outside of the parent country. The Servicing Broker is appointed to administer and invoice the local policy as per the instructions received from the Controlling Broker.
For businesses operating globally, working with a Controlling Broker with the right global network, and experience is critical. A competent Controlling Broker will also ensure all servicing brokers adhere to the same level of service and expertise that is expected from the Controlling Broker, in every country requiring insurance.
For multinational businesses, there are many benefits to having a single, master-controlled insurance program:
It is important for businesses to not only take such benefits into consideration, but to understand who they are partnering with to ensure a smooth insurance program for the business.
An exceptional level of collaboration, coordination and cooperation is required when setting up a Multinational Controlled Master Insurance Program. At Honan, our long-standing partnership with the World Broker Network (WBN) means we have trusted relationships with brokers and servicing brokers across the globe. Honan’s robust relationships with brokers through the WBN has been vital to not only our own growth, but that of our clients too. Being the only approved Australian broker in the WBN, supporting some of Australia’s fastest growing businesses with their expansion into offshore markets has been a privilege for many years now. Honan’s Global Networks team prides itself on developing and managing exceptional insurance programs on behalf of all clients and delivering outstanding standards of service. Quality communication with all stakeholders is paramount to success, as is proficiency in managing multiple projects, people and time zones.
If you are a business keen to explore how Honan can support your local or international needs today, or across the years to come, we’d love to hear from you!
Client Executive - Global
