Solutions

Choosing an international Insurance Program:
Our Solutions

1
_ Local Policies: Decentralized Control
For a variety of reasons, multi-national businesses may wish to trust the acquisition and management of insurance and related concerns to individual subsidiaries. With a local policy solution, each subsidiary obtains coverage relevant to local regulations and needs. This type of program helps companies ensure that the requirements of subsidiaries' local governments and organizations are fully met. As most countries require that businesses arrange insurance coverage with local brokers, decentralized control can be an effective strategy for important compliance issues.
Decentralized control also allows companies to take advantage of certain tax benefits. In many cases, premiums are tax-deductible only if they have been paid locally. Companies that opt for a decentralized control solution can also expect to have claims paid considered as indemnification rather than as taxable revenue, and penalties on local insurance taxes due to non-admitted policies can be avoided, as well. With the help of a decentralized control solution, payment in local currency and with adherence to applicable local laws is assured.
Traditionally, decentralized control may lead to under-insurance from a lack of homogenized coverage. Thanks to the collaborative power of the AESIS Network, however, companies interested in this type of solution can count on adequate coverage for each subsidiary across highly diverse locations.
2
_ Local Policies: Improving Control and Conditions
When local broker relationships are desirable but a greater degree of coordination seems necessary, companies may wish to work with a partially integrated solution. By incorporating a master policy into a primarily decentralized scheme, companies can benefit from easier control of their international programme. Benefits of a partially integrated solution also include better coverage conditions and more advantageous premium rates.
Two specific clauses allow companies to obtain adequate coverage for each subsidiary with the implementation of a master policy. The Difference in Limits, or DIL clause provides coverage over and above the limitations of locally-sourced and obtained policies, ensuring that subsidiaries are covered up to the level expected of all entities participating in the master policy.
The Difference in Conditions, or DIC clause provides specific points of coverage to any subsidiary whose local policies fail to address a given area in which other members are covered, according to the master policy. Companies can feel confident that even if a particularly attractive local policy leaves out a point of coverage important to the company as a whole, the master policy will step in.
As communication and harmony between the issuer of the master policy and local brokers is key for a successful partially integrated program,
AESIS is perfectly positioned to deliver this type of solution.
3
_ Controlled Master Program: for Complete Control of Group Insurance
A controlled master program or CMP focuses both responsibility and decision-making power in the hands of the parent company. The primary goal of a CMP is to dictate coverage and operational requirements in a controlled manner. As a provider of numerous controlled master programs, AESIS has developed multiple incentives for clients interested in centralized control.
The importance of ensuring that subsidiaries adhere to master policy guidelines and understand their responsibilities is essential, which is why our network delivers helpful booklets to introduce and outline procedures to subsidiaries. These documents help demystify coordination between local offices and the parent company in terms of insurance activities and lead to smoother, more successful work.
Policy and claims management are handled by local brokers within the AESIS Network for all CMPs. This allows local professionals to handle the particular aspects of diverse filing and notification requirements, freeing the parent company of the need to manage the day-to-day aspects of insurance in disparate locations. Local brokers also compile annual activity reports to help companies review progress. Employee benefit pooling can easily be incorporated into a CMP as well.
Delivering powerful control and a streamlined approach to coverage, a CMP solution from AESIS draws on the many resources and abilities of our international network.