4 questions for… Nigel Leppitt, Global Head of Multinational and Client Services at AGCS

Nigel: BI is one of the biggest concerns facing multinationals. In 2021, insured losses caused by natural catastrophes were estimated at US$105bn and the summer’s European floods are believed to have caused economic losses amounting to over US$40bn [4]. So, whether BI is caused by existential risks such as a natural catastrophe impacting physical property, cyber-attacks interrupting the supply chain, or a pandemic affecting individuals, companies have to consider the best ways to manage disruption and continue to trade.

Businesses can mitigate through measures such as diversifying or digitalizing supply chains or rigorous quality control, but ultimately they need further protection in the markets where they operate. This requires risk coverage in different regulatory and political jurisdictions and ensuring it is provided on time, at the right level.

The main advantage of a global program is simplification and coordination. IIPs provide a centrally coordinated master program linked to locally admitted policies. They cater for the range of cross-border risks, conditions and limits that a global entity needs to protect its business – while complying with local regulations. For example, one of our international clients recently wanted a multiline (property/liability), multi-country solution, with partial self-retention of the intangible risks in their captive. By leveraging our network capability, both the risk transfer and non-risk transfer components are now serviced to the required service level agreements. This has reduced workload for the client and created cost savings.

Nigel: Most companies are experts in their sector, but not necessarily in understanding the global regulatory frameworks or license rules linked to insurance. A benefit of using a partner such as AGCS is that the multitude of insurance guidelines and regulations are managed by the carrier rather than the client. AGCS can handle these in an international program rather than a patchwork of country-level or individual agreements, policies and coverages. A global program delivers full coverage, or “bridges” the risk of coverage gap, by having a master policy that specifies the difference in coverage and limits. This caters for the current risk footprint of the international business but can also “flex forwards”, as the business grows, acquires, divests or enters new markets. If a business has to adapt to emerging intangible or tangible risks, it can be taken care of in this partnership.

Regular multinational program stewardship meetings allow the program to be changed as client needs evolve. Design reviews allow for the evolving coverage versus self-retention decisions, depending on the risk manager’s appetite and portfolio.

Nigel: We recognize each business has its own risk appetite, prevention and protection needs. Our global presence and breadth of scope allow us to provide bespoke or standardized solutions. For example, we recently packaged a solution for a multinational retailer that required a one-stop-shop insurance solution spanning its markets of interest, including property, energy and construction, marine, and political violence.

We have overhauled service levels across our network, and this year we will extend our offering to new segments and markets. In future, we expect the use of data and digital data exchange to become integral to how we interact with clients and partners.