Airmic guide to compliance of multi-national insurance programmes

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The arrangement and purchase of compliant insurance programmes to protect operations at both local and central level remains difficult and complicated. There are a myriad of different laws and regulations that exist worldwide, some of which are clear and some of which are distinctly opaque. This leads to uncertainty, unpredictability and ambiguity.

Inadvertent breach of these laws or regulations, often only identified upon disclosure of the insurance contract to regulators or during litigation, might render the insurance contract illegal or unenforceable exposing the buyer to a sudden "uninsured" exposure. This may result in the loss being unpaid and the possibility of fiscal or penal sanctions.

Fiscal and regulatory information is a matter of fact in some jurisdictions and a matter of interpretation in others. Advice currently available is not consistent, can be contradictory and/or unreliable. Companies need certainty with respect to purchase and indemnity following a loss, whether this is through a local policy or a master policy. The lack of access to consistent information allowing the insurance buyer to make an informed decision compromises the position of the insured.

This guide has been produced with the following purposes:
- Outline the difficulties and the consequences of non-compliance of multinational insurance programmes.
- Identify the issues that need to be addressed when ensuring compliance of multinational insurance programmes.
- Provide a structured approach and checklist to ensure compliance of multinational insurance programmes.
- Present a checklist of questions that the insurance buyer should ask of the insurer and/or insurance broker to gain assurance on compliance considerations.