Solutions

Insurance Regulatory and Tax Consulting

Giving you confidence your global insurance programme is compliant.

Global connectivity

More than 20,000 existing Global Marsh Multinational clients across all industries, geographies, and market segments, demonstrating our deep knowledge of global programs and local coverages.

Specialist Knowledge

Over 50,000 global and local programs provide our specialists with extensive knowledge to deliver advice on compliance, local regulations, and execution of your global risk strategy.

Regulatory and tax compliance is an increasingly important issue for senior executives and risk managers of multinational companies.

Marsh’s specialist Insurance Regulatory and Tax Consulting (IRT) Practice addresses the complexity of global insurance program compliance issues.

The IRT Practice is dedicated to providing multinational companies with support and information to help them evaluate regulatory and premium related tax risks arising from their insurance and alternative risk-financing programs in all parts of the world.

Our team can provide the following services

  • Regulatory and tax review: Review of current global insurance programmes to identify insurance regulatory and tax issues.
  • Pre-renewal strategy: Participate in pre-renewal strategy meetings with the organisation’s brokers and professional legal and tax advisers to define viable compliant global insurance programme options.
  • Placement strategy: Contribute decisively to discussions regarding the design of the organisation’s international global insurance programme, addressing local policies and respective limits.
  • Premium allocation methodology: Review current premium allocation methodology and consider how it could be restructured optimally.
  • Premium allocation model design: Design a “fit for purpose” premium allocation model considering factors relevant to the operations of the multinational company. Through use of the model, provide recommendations on how to allocate global premiums in light of specific regulatory and tax issues.
  • Risk financing structures: Identify current regulatory and tax issues, and provide appropriate suggestions. Offer expert support in identifying and tackling tax issues in countries with complex insurance regulatory legislature, such as Canada, Australia, USA, etc.

Recent Regulatory Changes

The global environment with respect to insurance requirements, premium taxes, and insurance compliance regulations continues to undergo significant changes, recent events include:

  • Insurance supervisors and tax authorities entering into bilateral and multilateral arrangements to exchange information about the activities of insurance companies and multinational companies.
  • Environmental, Social and Governance (ESG) criteria has become a priority and a point of attention that needs to correspond with the current business model and trends.
  • The decisions by European and USA courts, compounded by an increase in proactive premium tax audits by various tax authorities in Australia, Belgium, Germany, Switzerland, and the USA.

Why Marsh Multinational

  • Multinational companies need to be confident that their insurances comply with all required customs, taxes and legislation.  Our team of experts can help you answer the following questions:
  • Does your global insurance arrangement conform to all relevant insurance and tax regulations?
  • Can claims be paid locally, without breaching local laws and regulations?
  • Is the premium allocation methodology “just and reasonable”?
  • Are allocated premiums recharged to overseas entities on a consistent basis?
  • Are local taxes due and payable on the global insurance policies? If so, are they calculated and dealt with correctly?
  • Have all corporate/income tax implications of global programmes been considered?

Case study

Compliance: Allocation Recalculation

A multinational corporation was concerned about the high cost of taxes associated with insurance premiums. Our Insurance Regulatory Tax and Consulting Practice found the client was paying unrequired premium taxes on its entire global premium. Bottom line: A reduction of annual premium tax by €1.3 million.

For more information on Insurance Regulatory and Tax Consulting