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Multinational Client Services Case Studies

Allocation Recalculation

We helped improve a German company’s premium allocation and tax calculation — and reduced its annual premium tax by €1.3 million.

A German multinational corporation was concerned about the high cost of taxes associated with insurance premiums.

Examining the client’s allocation arrangements, we discovered the company was paying 19% German Premium Tax on its entire global premium, despite allocating general liability premiums to all group entities. Also, a review by our International Regulatory and Tax Practice revealed the client was paying significant unrequired premium taxes. We helped improve the client’s premium allocation and tax calculation, resulting in a reduction of annual premium tax by €1.3 million.

Double Trouble

For a global shipping/logistics company, we uncovered and repaired duplicate liability and property policies — resulting in a 50% reduction in premiums.

A large shipping and logistics company was frustrated with its broker’s disjointed global service and inability to provide a clear view of overseas placements. We were asked to review its international program for cost savings opportunities.

Deploying our local service network to inventory and audit local placements, we discovered duplicate liability and property policies in every country. By analyzing local requirements and eliminating duplicate covers, we achieved a 50% reduction in global premiums, and also reduced the risk of other insurance clauses negatively impacting future claims.

Balance Sheet Bolstered

Analyzing a Fortune 100 company’s global exposures and insurance policies, we improved coverage and achieved balance-sheet savings, including a 13% rate reduction.

A Fortune 100 company engaged Marsh Multinational Client Service to help it uncover balance-sheet savings.

Upon a comprehensive analysis of the company’s global exposures and insurance policies, we improved coverage and delivered balance sheet savings. Despite market capacity constraints, we achieved a rate reduction of 13%, and added 20 countries and coverages. We also combined disparate policies into a single coordinated program deployed in 33 markets in Bermuda, London, and the US. We also issued a manuscript policy with insured-friendly wording.

'Black Swan' Song

For a global organization concerned about the political risks of a potential "black swan" event, we maximized the capacity of 20 underwriters and optimize premium rates.

Concerned about the balance sheet impact of a potential "black swan" event, a global organization needed to better understand the insurance market — specifically, political risk insurance.

We examined the company’s risk solutions and presented several options for consideration. They included varying risk retention levels as well as splitting the insurance program into tranches to optimize premium rates and maximize underwriter capacity. The ultimate solution coordinated 20 underwriters, most of whom wrote their maximum lines. We worked with each to ensure competitive pricing.

A Global Network

For a consumer products company concerned about its captive’s exposures, we provided a global carriers network for a comprehensive casualty program.

A multinational consumer products company with in-house insurance wanted to free its captive agency from specific exposures.

With Marsh, they accessed a global carriers network and expanded their coverage. We replaced a patchwork of local limits with a global casualty program, including local limits up to US$25 million and a buy-down of deductibles for financial and professional insurance. We also arranged for aggregate stop-loss protection and separate reinsurance to the company’s financial and professional lines insurer.

Creative Captive

To help a global firm move from guaranteed costs to a captive solution, we leveraged its independent taxpayer status and ability to post letters of credit.

A global firm with a large volume of product-liability claims had outgrown its guaranteed cost program. The company wanted to involve its in-house captive agency in helping to finance anticipated claims activity.

To transition the company from guaranteed costs to a captive solution, Marsh Multinational Client Service crafted a creative special structure that leveraged the captive’s position as an independent taxpayer and its ability to post letters of credit for collateral.

Shifting Gears

When its insurer’s requirements changed, we showed a large European industrial company another way to evidence its casualty coverage.

When its insurer’s requirements changed, a large European industrial company needed another  way to evidence casualty coverage for financial losses due to waste heat and other power-generation risks.

We arranged fronting for total limits required. We also reinsured the first US$1 million in potential loss to the company’s captive, with the balance reinsured to the master policy’s issuer. This was secured by an indemnity agreement documented by a matching deductible endorsement to the master policy.