60% of companies have never commissioned an independent audit of their

global insurance programme, according to a survey carried out by JLT

A survey of leading risk managers that attended a Global Insurance Management workshop run by Jardine Lloyd Thompson Limited (JLT) at the Association of Insurance & Risk Managers (AIRMIC) Annual Conference revealed that consistency and policy coverage were key reasons for implementing and maintaining global insurance programmes. 

67% cited compliance and policy coverage as key buying priorities, with 64% stating that control and consistency were key drivers for implementing and maintaining global insurance programmes.

Karen Gorman, Partner, JLT, says, "Achieving these ambitions demands a clear understanding of the insurance regulatory requirements in the different territories and of the policy extensions and nuances that help achieve a compliant programme and ensure that claims can be paid, directors do not fall foul of local laws and that companies do not get nasty surprises from the failure of their local and global programmes to dovetail.

It was therefore surprising that corporate governance requirements have not demanded that more companies commission independent reviews of their global insurance placements.  60% had never commissioned such a review and only 30% had done so in the past three years.

A global insurance review considers the effectiveness of the programme and whether a traditional, hub or centralised model would be more efficient; and if the insurance arranged is done in as compliant a way as is possible.

Tracey Clayton, Associate, Global Service Team, JLT, says "Companies commission many different types of independent review from their accounts through to pension and other assets and liabilities. Whilst issues with global insurance placements could cost many millions in preventable uninsured losses, companies have clearly not realised the many potential benefits of a full independent global insurance review".

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