Keys to managing the risks of a global business
Authored by AIG
As multinationals grow their business in different regions, so do their needs for experts on the ground.
Given the complexity of today’s global risks, companies looking to grow internationally are increasingly turning to local experts and alternative solutions to protect their operations and supply chains, including manufacturing plants, digital networks, employees, and executives.
“The key is to plan early,” says Elke Vagenende, AIG’s Global Head of Multinational.
“Managing the risks ahead also involves being strategic under a comprehensive multinational insurance program,” Elke adds.
The program’s design should reflect insight from those highly skilled at identifying and anticipating a range of risks unique to the specific countries or locations where a company plans to expand their operations. Having access to such expertise is more important than ever, as local market practices and regulations rapidly evolve.
“When companies grow internationally, they need to understand the complexities of the world they’re operating in,” says Elke, who leads AIG’s team of over 400 multinational experts and its insurer network spanning over 200 jurisdictions.
How AIG Multinational’s insurance solutions stand out in the market
The scale of AIG’s global network and local expertise remain a distinct part of its Multinational business. More than that, the team works alongside underwriters, brokers, and claims experts – helping clients manage risks in a wide range of ways.
For example, AIG’s multinational experts proactively monitor market changes to help clients ease into new or evolving rules seamlessly and strategically. Any shift in local laws, such as tighter privacy and data regulations, may have broad implications on the terms of a company’s insurance policies or how a business runs locally.
AIG’s experts are also adept at navigating the nuances of regulatory requirements across a range of jurisdictions. This is relevant for many reasons, and Elke shares a scenario to explain why:
Suppose a U.S. client has dozens of operations in Italy. In the event the client experiences local losses and files an insurance claim, having experts well-versed in the workings of the Italian legal system is critical to support clients as they pursue the payment of claims.
Clients, brokers, and other markets have a lot of confidence in AIG’s claims handling capabilities, Elke says.
“And it’s that capability – the combination of our multinational team and claims – that is incredibly powerful.”
As global risks rise, multinationals seek alternative solutions
Building a sound multinational insurance program is critical, since global risks have become increasingly interconnected and challenging for companies to manage.
This is especially true for certain lines, such as cyber insurance, Elke explains. “As the frequency and severity of ransomware attacks increase, a growing number of companies are turning to alternative solutions such as captives to fill gaps from coverage unavailable in the traditional insurance market.”
Captive clients benefit from AIG’s multinational capabilities in several ways: Because most captives are not licensed to (re)insure risks in all territories, clients typically work with a fronting company like AIG, which has a network capable of covering most countries around the world. AIG will typically handle the fronting underwriting, issuance of local policies and certificates and related money movements on behalf of the captive.
“Our captive fronting underwriters work hand-in-hand with our product teams to meet the specialized needs of our clients,” Elke says. “It’s this flexibility that really differentiates AIG.”
Creating an optimal customer experience
Looking ahead, AIG Multinational is exploring different opportunities to enhance the broker and client experience.
Multinational companies often have multiple, if not up to hundreds, of policies with AIG. The ability for clients to track the status of premium payments or understand which policies have been issued is vital.
Developing a deeper understanding of potential risks is equally compelling. By drawing on its vast experience, AIG plans to provide brokers and clients with more robust and substantiated insights as they make critical decisions on the future of their business.
“Clients and complexity have always been a theme throughout my career,” says Elke, who began as an insurance consultant for multinational companies in the energy and technology industries before working as an underwriter and distribution specialist.
“Creating a positive experience for AIG’s clients is a key priority.”
Bottom line
The global risks ahead are increasingly uncertain and interconnected, but this has not discouraged companies from expanding their global footprint. With the right expertise, companies can manage the risks ahead, grow with confidence, and realize their optimal potential.
