Transcript Slide 1

Chubb Multinational
Solutions
February 2011
Disclaimer
The information in this presentation is provided for
illustrative and general information purposes only.
The material presented is not, nor does it purport to
be, a complete or exhaustive analysis of legal
liability exposures or risks. The availability of
insurance coverage depends on the particular facts
and circumstances of any claim and the language of
the policy as issued. Advice with respect to
particular insurance needs or actual or potential
legal liability must be obtained from your insurance
broker or your lawyer. Actual breed of mite which
caused loss may not be as pictured.
Recent Headlines
The New York Times:
Only 40% of American Companies have any type of
Travel Risk Management Program
Foreign Trade Council
and World at Work:
64% of worldwide travelers develop some illness
abroad and 1 in 30 travelers may require
emergency care while traveling abroad.
The Economist:
Kidnapping is on the rise around the world, largely
led by political unrest.
Agenda
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Introduction
Capabilities
Admitted vs. Non-Admitted
Who needs “multinational insurance”?
New Global Extension
International Auto
Foreign Voluntary Worker’s Comp
International D&O
Kidnap & Random
Conclusion
Chubb’s Global Network
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Branch Offices in 29 countries
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Affiliate relationships with 120
insurance companies in 100
countries.
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Correspondent broker
relationships in over 60 countries
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Local underwriters, claims
analysts, and loss control experts
in more than 120 offices
Correspondent Broker Services
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100+ independent, full-service, multilingual agents
Situated around the globe with ability to provide
information on local market requirements
Provide international experience and local presence
Act on instructions from controlling agent
Proactive Loss Control
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25% of Chubb’s loss control risk
engineers are located outside North
America
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Leading edge of jurisdictional
emerging issues and trends
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Well-versed in local laws, regulatory
requirements, building codes and
international standards
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Provided at no cost to the insured
Admitted vs. Non-Admitted
Admitted Coverage
Non-Admitted Coverage
Written and issued by a company licensed to do
business in the country where the risk is domiciled.
Issued by a company not licensed to do business
where the risk is located.
Country laws and legislation specify whether admitted
insurance is a requirement.
May be cost-effective.
In most foreign countries, premiums for admitted
policies are tax deductible, and loss payments on local
policies are considered non-taxable events.
Provides local certificates of insurance.
Gives insureds access to existing terrorism or cat pools
(e.g. Cat Nat in France, Consorcio in Spain, and Pool
Re in the UK).
May be more expensive.
Ability to allow insurer to subrogate.
Absolute control in the design of the policy and
coverage terms.
Accelerated program implementation.
However:
 No access to government pools
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Penalties of non-compliance may include
monetary fines
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Jail time related to non-admitted insurance in
various third world countries has been reported
(e.g. China)
MasterKey Global Extension
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Easy-to-apply policy
endorsement that can be
used with multiple liability
product platforms
Advancements or
Reimbursements
DIL/Excess and DIC
Collectibility provision
Currency provision
Key Selling Points
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Flexible rates that reflect
unique legal and/or social
climate
Fills gaps left by domesticonly policies
Provides a separate tower
of liability limits
Protects the insured’s
distribution network
Advances funds for defense
Loss Scenario – Foreign GL
Our insured stored food products at a public warehouse in
Rotterdam, Holland. The warehouse owner reported that
there was an infestation of mites at the location caused by
contaminated product that our insured placed in the storage
facility.
Because of the infestation, all outgoing shipments were
blocked by the owner.
Chubb claims determined that our insured’s product was the
cause of the infestation and the claim settled for slightly less
than $300,000 to pay for the infestation to other stored goods.
Who Needs Multinational Insurance?
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Clients who generate
any revenues from
sources outside
Canada
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Clients with employees
traveling outside
Canada
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Clients with fixed
assets outside Canada
International Automobile Coverage
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DIC and Excess Liability
insurance up to $1,000,000
Requires that compulsory
automobile insurance be
purchased locally
No compulsory self-insured
liability retention required
Broad definition of covered
automobiles
Loss Scenario – International Auto
While visiting Ireland on a business
trip, our insured borrowed a car from
a colleague. While driving, our
insured hit a house and killed a man.
The owner’s local policy declined the
claim due to poor maintenance of
the auto – the tire treads were too
low.
Total loss exceeded $200,000.
Foreign Voluntary Workers Comp
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Bodily injury by accident or
disease in the course of
temporary foreign
employment
Primary coverage provided
for employees on a 24 hour
basis
MEDEX travel assistance
services included
No war or terrorism exclusion
MEDEX Services
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Worldwide medical referrals
Emergency medical evacuations
Repatriation
Assistance with the coordination of
rehabilitation after an evacuation
Arrangement of emergency
medication, blood & vaccine
transfers
Continuous updates to family,
home physician &/or employer
when appropriate
Loss Scenario – FVWC
A U.S. Employee for a communications firm was in
London, England for a business trip. While walking
down the street, and not being familiar with the
surroundings, the employee was looking in the wrong
direction when hit by a bus.
The employee received
immediate care and Chubb
Claims set a reserve of
$700,000.
Admitted D&O Coverage
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Locally issued limits up to $5M
Canadian-issued policy acts as
a “global umbrella” sitting over
the local underlying coverages
Aggregated deductibles and
limits are available, where
permitted
DIC/DIL cover fills potential
coverage gaps
Why a Multinational D & O Policy?
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Regulatory enforcements
of admitted requirements
are on the rise
Executives sitting on
international subsidiary
boards require adequate
protection
Canadian/US policy terms
not always tailored for
lawsuits brought abroad
Kidnap/Ransom and Extortion Insurance
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Financial protection in the
event an organization suffers
a kidnapping or other
extortion loss.
Insurance provided for:
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Fees for independent
negotiators
Rewards paid to informants
Salary continuation
Reasonable medical
expenses
Loss Scenario
The owner of a family-run business
was abducted while traveling
overseas. The kidnappers
demanded a $3 million ransom
payment. A security consulting firm
was immediately called in to deal
with the situation.
The consultants negotiated a
ransom of $625,000, delivered the
payment, and recovered the victim
unharmed. Total Loss was
$675,000
Top Five Reasons to Choose Chubb
1.
Collectibility Provision
2.
Coinsurance Deficiency Up
to Full Policy Limits
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Foreign Voluntary Workers
Compensation Insurance
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Worldwide Services
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Correspondent Broker
Services