Challenges in Global Insurance And International Claims

  

 

    challenges in global insurance and international claims multinational organizations have become extremely powerful entities in the 21st century there are many companies which have business interests that are spread across hundreds of countries given the global nature of such companies it is only rational for some of these companies to want a global insurance provider these companies want to standardize the insurance experience for each of their subsidiaries however achieving the same isn’t easy there are many obstacles that both the insurers as well as the insured have to face while making international claims these differences have been explained in detail in the article master versus local insurance global companies want to deal with one insurance partner since their business is so widespread it can become extremely complex for them to have different insurance partners at all their location they do not have the time or the resources to deal with multiple insurance partners hence they end up appointing one insurance company as the master service provider all their communication are routed via the master

    insurance company this master service provider on the other hand has the responsibility of finding local service providers which can best meet the needs of the global company in most cases master service providers and local insurance companies are able to function as one unit and provide seamless services to the customers however in other cases there might be dispute between local companies and master companies and this may affect the quality of services which are provided to the global company for this reason it is important to select a reputed master service provider the master insurance company has a vital role to play since it has to augment local policies in such a manner that the consistent experience can be provided to the insured experienced master insurers can make global insurance much less stressful that in otherwise turns out to be legal differences it needs to be understood that insurance is a highly regulated business all around the world however this regulation isn’t homogeneous and diverse from place to place this is the reason why there are many legal differences which make it difficult to provide a consistent insurance experience also these differences do not have to be across continents within europe itself there is a huge difference in the regulation countries like french have a totally different set of rules as compared to england or spain dispute resolution the insurance contract between the master service provider and the insured clearly mentioned the jurisdiction of the contract hence it also mentioned the exact court or arbitrator that needs to be used in the event of a dispute between two parties problems arise when the master service providers deal with multiple local service providers the end result is a web of contracts

    which are extremely modeled up the exact jurisdiction of this contract is difficult to determine creating room for more disputes as far as the insurer is concerned they expect the settlement from the master service provider other disputes are between the master service providers and the local insurers however in reality things are not so simple sometimes in the event of catastrophe the master service provider may be bankrupt and hence dealing with local insurance and solving their disputes may also become necessary parties involved when an international claim is made multiple parties get involved in the process for instance insurance adjusters from local as well as the master insurance company may get involved also local departments such as police and fire brigade may be involved it is also common for other parties such as forensic accountants and auditors to get involved in the event of a dispute multiple laws firms may also get involved in the process each of these parties ultimately wants to have a loot at the same set of documents different parties may end up reaching different conclusion leading to further dispute which may be difficult to resolve in the past there have been many cases where different parties have presented wildly different interpretation on the same contract in court thank you

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