Issue
A prospect allowed for its local management teams overseas to place its property and casualty insurance separately from the parent company's program in the United States. This included separate property & casualty insurance programs in:
- United Kingdom
- France
- Germany
- Spain
- Italy
- Netherlands
- United States
None of these programs included a consistent level or breadth of coverage. Some of these
programs were redundant and represented double coverage. Just as importantly, no one person
in the organization could describe how the risk program was structured Globally.
Upon further investigation, the depth of coverage purchased overseas was 1/10 that which
was purchased in the United States and the revenues generated from the foreign operations
represent $100M (US) of the companies total revenue of $200 M (US).
We were told that the previous agent attempted to consolidate the program but failed.
Result
No continuity of coverage, No use of the buying power of a consolidated program. A CFO without the answers to simple risk transfer questions.
Value
KMRD rolled up their sleeves and used Xchange to gather the insurance and exposure information
directly from managers in each country. We then structured a global insurance program with
a consistent level of coverage while taking advantage of some enhancement only made available
in the countries of origin.
Believe it or not, KMRD decreased the costs of their insurance overseas by 62%
while:
- Increased the General & Auto Liability Coverages Limit from $1M to $11M.
- Converted the Foreign Property Coverage to a Blanket Basis, allowing the total value of all overseas location to apply to any one location.
- Added Worldwide Commercial Crime Coverage.
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