Global Risk Assessments

Risk Assessments

Meeting Your Global Business Needs

Global Risk Assessments

Do you know what your total cost of risk is? (i.e., premium, fees, taxes, commissions, and losses in each country where you have operations)
Do you have the same degree of control over your international program/risks as you do over your domestic programs?

If you have answered no to either of these questions, you should know that the majority of US based multinationals have grown their overseas operations and exposures significantly over the past 10 years. In many cases, local AND global coverages do not accurately reflect the local exposures.

As companies continue to expand outside their home countries, accurately assessing risk and exposures, implementing a customer-driven risk management program, and managing this risk management program will be required in order to properly protect future growth plans.

To help companies in this situation, Globex offers a state-of-the-art solution: a Global Risk Assessment.

What is a Risk Assessment?

It is:

A local site visit by qualified insurance professionals
An independent assessment of local exposures, values AND costs
A review of existing service providers (broker, underwriter, third party)
A discussion with local management about current operations, likes and dislikes of the current risk management program
A summary of current insurance arrangements
Detailed risk management observations and recommendations from a local as well as a global standpoint
A tool to minimize your cost of risk
A tool to better manage and control your overseas risk management program

It is not:

Simply a review of local policies and coverages

Situations where a Globex Risk Assessment would have been of value

In 1988 underwriters budgeted $17,500 to assess one multinational company's local exposures. Their exposure analysis proved risk to be acceptable. Rate ultimately included cost for the $17,500, which was never stripped out of premium in years two, three and four.
A company was unable to provide broker with adequate risk exposure data. Broker had local representative complete risk assessment. Result was a policy summary with inadequate exposure data. Underwriters refused to offer significant capacity, causing client to assume a significant self-insured retention both primary as well as quota share.
A multinational company was unable to obtain adequate exposure information. Broker marketed risk and every market approached declined to write the exposures. Broker ended up placing risk for an agreed amount, which was 50% less than actual exposures at a premium 300% of expiring.

Situations where a Globex Risk Assessment was of value

Multinational company authorized risk assessments in four territories. Total fee for assessments was $18,000. Assessment results were used with underwriters who ultimately quoted a renewal premium that was $7,5000 less than expiration.
Fortune 1000 company authorized a risk assessment for suppliers in 18 territories. Contingent business interruption exposures, coverage deficiencies, duplication in corporate versus supplier costs as well as significant underinsurance issues were identified. Within 12 months program costs were reduced by over $200,000. Within 30 months client implemented US standard risk management and employee safety practices in all locations.
Fortune 1000 client had made numerous acquisitions overseas. Obtaining exposure information was difficult and client was concerned with lack of information. Authorization was given to assess European operations. Significant duplication of costs, coverage deficiencies, as well as duplicate covers were identified. Broker was also charging both fee and commissions on local placements. Recommendations showed client how to best allocate premium to reduce fees and taxes by $160,000.

Request a proposal

Globex International's Risk Management specialists are available to discuss your need and formulate a custom proposal for your Global Risk Assessment. You can contact us by email or telephone at 1 973 541 1144 in North America or +44 20 7357 9841 internationally.