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By Martin Flanagan
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Irish multinational businesses generate in excess of € 250 billion in revenue across the world according to the CSO. As Irish businesses continue to grow and expand internationally, managing risk across multiple jurisdictions becomes increasingly complex. From differing regulatory landscapes to varying local insurance requirements, it’s critical that companies take a strategic approach to protecting their global operations by way of an effective international insurance programme.
What is an international insurance programme? It’s a coordinated risk transfer mechanism designed to provide consistent and comprehensive cover for businesses operating in multiple countries. Rather than purchasing standalone local policies in each jurisdiction – which could lead to gaps within the insurance cover and administrative problems - a global programme offers a centralised, structured framework tailored to the business’s international footprint and specific needs.
1. Understanding Regulatory Differences
Insurance is regulated at a national level and requirements vary significantly from country to country. For example, some jurisdictions have strict rules on admitted insurance - requiring that cover be provided by an insurer licensed locally - while others may permit non-admitted insurance under certain conditions. Policy wordings, coverage limits, taxes and compulsory covers (like workers' compensation or motor liability) also vary widely. For an Irish business expanding into different territories this can quickly become a compliance minefield.
A well-structured international insurance programme ensures local compliance whilst maintaining central oversight. Typically, this is achieved through a master policy issued in Ireland with locally admitted policies issued in each country of operation. These local policies are aligned with the master insurance policy, creating a globally consistent programme that satisfies local regulatory requirements.
2. Why Arrange an International Programme?x
There are a number of important reasons why a business should consider a global insurance programme if and when their operations expand to different territories, some of these include:
a. Regulatory Compliance-It can ensure all operations are compliant with local insurance laws, helping avoid penalties or coverage disputes.
b. Coverage Consistency-A global insurance programme allows for alignment of policy terms and limits across territories. This reduces gaps and overlaps - for example, through the application of ‘Difference in Conditions’ and ‘Difference in Limit’ endorsements
c. Claims Control and Coordination-It can centralise claims handling and oversight
d. Exposure Evaluation/Risk Management Insight-Facilitates central reporting and benchmarking of risk exposures which bolsters strategic decision making
3. The Benefits for Irish Businesses
For Irish businesses with a growing international footprint an international insurance programme offers peace of mind. It demonstrates to the key stakeholders that risks are managed professionally and consistently, regardless of location.
Further to this by working with a broker such as Arachas Corporate Brokers who are experienced in placing and servicing global programmes, Irish businesses benefit from local market insight through our local partner offices, access to international insurers and a coordinated, structured service model.
This not only strengthens a company’s resilience but also supports smoother international expansion.
Irish businesses cannot afford to treat insurance as an afterthought when entering new markets. As a leading corporate insurance broker, Arachas specialise in designing and managing international insurance programmes that align with your business needs, support compliance and protect your global operations.
If your business is planning international expansion talk to myself or one of our experienced team about how an international programme can be the cornerstone of your global risk strategy.
Arachas Corporate Brokers Limited trading as Arachas is regulated by the Central Bank of Ireland. Registered in Ireland No. 379157.