Global Risk Solutions

Reducing your TCOR across a multinational insurance program starts with consolidation. Organizations that bring their global exposures under a coordinated global program structure rather than managing disconnected locally admitted policies country by country gain the leverage to negotiate better coverage terms, eliminate duplicate coverage and close gaps before they become costly claims. HUB’s Global Risk Solutions advisors take an enterprise risk management (ERM) view of your international insurance program, identifying where your program is working, where compliance risk is building and where proactive claims coordination can reduce leakage across jurisdictions.

A Controlled Master Program (CMP) is the foundation of most well-structured global insurance programs. Under this global program structure, a master policy issued in the organization’s home country sets the broadest available coverage terms, while locally admitted policies satisfy compliance requirements in each country of operation. 

Difference in Conditions (DIC) and Difference in Limits (DIL) coverage fills any gaps between local and master policy protection. For organizations with significant retained risk, a captive-fronted program can be layered into the CMP structure. In this scenario, a licensed fronting carrier issues locally admitted policies while the captive assumes the underlying risk, often supported by reinsurance solutions that optimize the program’s overall cost and retention profile. HUB manages the entire structure as a single, coordinated cross-border insurance solution from local policy issuance through compliance reporting and claims coordination.

Admitted insurance is provided by carriers licensed and regulated by the insurance authority in the country where the risk is located. Most countries require locally admitted policies for certain lines of business, as operating without them can result in tax penalties, fines or the inability to pay a claim locally. Non-admitted coverage, placed with a carrier not licensed in the local country, is permissible in some jurisdictions and sometimes necessary when admitted markets are unavailable. However, this type of coverage carries regulatory and tax risk that organizations must evaluate carefully, as it may prove unenforceable at the time of a claim. HUB’s Global Risk Solutions advisors assess admitted insurance requirements territory by territory, building international insurance programs that satisfy local compliance obligations while maintaining the integrity of the broader global program structure.

Difference in Conditions (DIC) and Difference in Limits (DIL) coverage are the mechanisms within a global insurance program that close the gap between what a locally admitted policy provides and what the master policy is designed to deliver. DIC coverage responds when a local policy’s terms are narrower than the master’s, covering exposures the local policy excludes, while DIL coverage responds when local limits fall short, paying the difference up to the master policy’s limits. Together, DIC/DIL coverage provides consistent protection across every location in a multinational insurance program, regardless of what local markets can provide.

Local compliance in a global insurance program goes beyond placing locally admitted policies. It means meeting in-country requirements for premium payment, policy issuance, mandatory coverage lines, minimum limits and carrier licensing standards that vary by territory. Organizations that treat compliance as a one-time exercise rather than an ongoing discipline risk penalties, coverage disputes and claims payment failures that add directly to the total cost of their international insurance program. HUB’s Global Risk Solutions practice maintains compliance and regulatory expertise by monitoring changes proactively and updating your cross-border insurance solutions so your program stays compliant across your entire global footprint.

A global insurance program can be structured to address a broad range of exposures depending on an organization’s industry, operations and territories. Coverage lines commonly span property, general liability (GL), directors and officers (D&O) insurance, employment practices liability insurance (EPLI), workers’ compensation, business travel accident, kidnap and ransom, marine cargo and cyber insurance. For organizations with complex risk financing needs, reinsurance solutions and captive-fronted arrangements can be layered into the global program structure to optimize retention and manage catastrophic exposures. HUB’s Global Risk Solutions advisors assess your full exposure profile to build a multinational insurance program with the right cross-border insurance solutions for where your organization operates today and where it’s headed.

Claims coordination across borders is one of the most operationally complex aspects of a multinational insurance program. When a loss occurs internationally, the claim may involve a local carrier, a master policy insurer, local legal requirements and, if DIC/DIL coverage is triggered, coordination across multiple layers of the global program structure. For organizations using captive-fronted programs, there is additional complexity to manage the flow between the fronting carrier, the captive and any reinsurance solutions sitting behind the program. HUB’s global network of advisors and local broker partners manages claims coordination across jurisdictions, advocating for your organization from first notice of loss through final settlement and giving your team a single point of contact regardless of where in your international insurance program the loss occurred.