Date / time
In an increasingly global marketplace, many international corporates operate in a wide variety of jurisdictions, where the commercial, fiscal and regulatory environment differs significantly from that of their home territory. While such companies face different risks across the globe, they want to ensure that they manage their risk in a consistent manner wherever they are doing business. The assessment of that risk and the composition of an appropriate insurance programme is a huge challenge.
In this presentation, Christopher Cardona (HFW London) and Geoffrey Conlin (HFW Paulo) will use their experience of Latin American jurisdictions to inform a discussion of global insurance programmes and the challenges they present, focusing in particular on the so-called financial interest clause, which purports to provide cover to a parent company in respect of any damage to its financial interest in its overseas subsidiaries.
They will consider:
- Different types of global programme e.g. local policies, global policies, controlled master programs and the operation of DIC/DIL and financial interest clauses
- Some of the main challenges posed by local regulatory, legal and claims regimes of key Latin American jurisdictions e.g. fronting ins/reinsurers, cession rules, interest and monetary correction
- Potential advantages and disadvantages of financial interest clauses
- English and local law issues when considering financial interest clauses e.g. insured interest, calculation of indemnity and local compliance issues