The global insurance industry is an ardently regulated entity. Most nations have strict laws and rules concerning insurance and have a great deal of interest in applying these regulations as a way to govern the actions of insurance companies. The problem, however, is that these regulations differing wildly from country to country, meaning that no two countries have the same regulations. As such, creation of global insurance programs has been a gargantuan challenge, and one that cannot be easily overcome through tenacity.
As with other industries of business, insurance is multi-faceted. As a service provider, insurance companies must cater to the needs of consumers and offer products that are designed to protect them when they need to be protected. As a business, insurers must concern themselves with profit and efficiency. AT last week’s Business Insurance Risk Management Summit held in New York, speaker Thomas Lawson, vice president of Factory Mutual Insurance Co., noted that this balance is being put to the test by international regulations.
As more companies grow interested in forming global insurance programs, Lawson advises that these companies should take care to ensure that the policies offered by the program are designed to be compliant with the regulations found in other countries. He noted that loss and regulatory backlash can find its way through even the most expertly disguised holes in a policy’s structure. As such, insurers will have to go to great lengths to make sure that even small problems do not fall through the cracks. For more live insurance news headlines.