This document provides an overview of global insurance programs. It defines a global program as an insurance program intended for a multinational business that provides consistent coverage terms across the insured's global operations through coordinated policies. A global program typically involves a master policy that provides difference in conditions/limits coverage on a licensed, unlicensed, or financial interest basis. The document outlines two hypothetical cases of how coverage could work when the parent company and subsidiary are in different countries, one with financial interest coverage and one expressly excluding the subsidiary's country. It then provides a brief overview of how a global program is implemented through a controlled three-party approach involving the master insurer, local insurers, brokers, and clients.

1. International Insurance
Programs

2. BRUSSELS, 20-21 October
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Venice, Italy 4-7 October
Global Programs
Introduction
 A Global Program can be defined as any
insurance program intended for a
multinational business wherein a common set
of coverage terms and conditions apply
across an insured’s global operations via a
coordinated group of insurance policies.
 A Global Program has a Master Policy
providing Difference in Conditions (DIC) /
Difference in Limits (DIL) cover either on a
licensed, Unlicensed Cover (UC) or Financial
Interest (FI) basis to provide seamless and
comprehensive global cover.
 A “Program Clause” explains the relationship
between Master policy and Local “admitted”
policies and may seek to impose a program
aggregate limit and/or simultaneous
termination of Local policies upon termination
of the Master policy
 A Global Program may involve Co-insurance,
Reinsurance to 3rd party reinsurers and/or
master client’s Captive
2•© 2015, XL Catlin companies. All rights reserved. I MAKE
YOUR WORLD GO

3. BRUSSELS, 20-21 October
www.ferma.eu
FORUM 2015
Venice, Italy 4-7 October
How Global Program Works
Implementation - a controlled three party approach
•© 2015, XL Catlin companies. All rights reserved. I MAKE
YOUR WORLD GO 3
XL Catlin
Master
Regional XL
Catlin NP Hub
(Hong Kong,
Austria or
Mexico)
Local XL Catlin
entity
Local Network
Partner
Master
broker
Local
broker
Master
client
Local
client
Provides information on
Global Program setup and
supplies local policy
information and suggested
rates
Provides information on
Global Program setup and
acts as conduit for local
policy information
Provides information on
Global Program setup and
coordinates local insureds
Instruction of
Network Partner
for issuance of
local policy
Exchange data and agree on final
wording of local policy, local
client to sign local policy
Issue and invoice local policies to
good local standard based on
information provided by master
insurer
Agree on final concept and instruct
broker to steer implementation, master
client to sign master policy
Agree on final concept
Agree on implementation
procedure

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•Extreme Hypothetical cases
•Parent company and policyholder is based in country A and the Subsidiary is
based in country B which is a non admitted country
Case One
1. DIC/DIL Master policy with a FIC applicable
to country B. Financial interest valued at a
sum equal to what would have been payable
if the subsidiary had cover under DIC/DIL
master T&C.
2. Policyholder allocates premiums to the
subsidiary.
3. In case of claim, the lost of adjuster in
country B, assess the lost of the subsidiary.
4. In case of a claim, the payment is made
directly from the insurer to the subsidiary or
the payment is made to the parent and the
parent sends the money to the subsidiary as
insurance claim recovery concept.
Case Two
1. DIC/DIL policy expressly excluding cover in
country B. FIC clause apart of the previous
exclusion covering the FI of the parent
arising from some specific losses in the
subsidiary. Even better, the Financial
Interest cover is given by an stand alone
policy instead of a clause in a DIC/DIL
master policy
2. Policyholder doesn’t allocate insurance
premiums to the subsidiary.
3. In case of a claim, the lost adjuster in
country A, asses the financial interest loss
of the parent arising from the loss in the
subsidiary.
4. In case of a claim, the insurer pay to the
Parent . The Parent doesn’t pay to the
subsidiary as insurance claim recovery
concept.

5. BRUSSELS, 20-21 October
www.ferma.eu
FORUM 2015
Venice, Italy 4-7 October
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