Over the next several years, multinational firms expect to expand trade in foreign markets or increase trade in international markets they already do business in. Managers dealing with international risk are challenged to manage their existing risk management programs, especially when exposures from physical plants, increased revenue and loss trends changing. That according to Richard Friesenhahn, Head of Multinational for North America at QBE.  He also notes that in emerging markets, it is important to understand the risk transfer and business objectives of the corporation when deciding whether to buy local policies in that market. Risk managers need to continually evaluate their international program based on changes in the environment while communicating with internal stakeholders, brokers and carrier partners.

Supply chain risk continues to be of major concern to international risk managers. As the world becomes more interconnected, supply chains become longer, expand to more countries. Mr. Friesenhahn suggests that risk managers get to know their suppliers, including those five levels down in the chain to understand their contingency plans for disaster recovery. That would include natural disasters, plant safety, labor conditions, quality control,

When putting together an international risk management program, Mr. Friesenhahn recommends considering the following:

  • Will a claim need to be paid in a foreign country?
  • Can a local representative be able to handle claims matters effectively?
  • Can capital from a claim to a master policy be transferred to a subsidiary, and what are the tax implications?

With the program in place, Mr. Friesenhahn suggests doing disaster planning and testing before a disaster occurs.

Load More Related Articles
Load More In Claims Management

Check Also

Guy Carpenter & RAA Execs on CAT Losses, Elections, & (Re)Insurance Markets

In this edition of CEO Angles, AAIS CEO Ed Kelly welcomes Guy Carpenter Chairman David Pri…