Zurich Multinational adds risk retention option for Casualty customers

Zurich Multinational, which provides international insurance solutions and services to businesses, has launched the Zurich Loss Pooling Program (ZLPP), a new option for U.S.-domiciled companies seeking more flexibility in how they manage Casualty risks and insurance across borders. ZLPP offers a compliant alternative to traditional guaranteed cost insurance programs or captives, helping companies retain risk even if they don’t have a captive.

“Many companies want to bet on themselves and retain some risk in their international casualty programs,” said Cody Griffin, U.S. Head of Multinational Underwriting for Zurich North America. “But without a captive, it can be difficult to do so, in part because differing laws and market norms can make it very challenging to move money across borders.”

ZLPP addresses that challenge by pooling the customer’s country-based premiums and returning the specified loss limit to the insured to use as desired. This program structure allows the insured to retain some risk and gain cash flow flexibility while enjoying the reliability of Zurich’s extensive Multinational experience and capabilities. Those capabilities include excellent claims handling services, regulatory compliance support and administrative simplicity, honed over 50 years of providing international insurance solutions. 

How it works

ZLPP is possible in part because of Zurich’s global network that spans over 200 countries and territories. It works like this:

• A master policy in the U.S. includes an endorsement that sets a loss limit, the maximum amount of losses the insured agrees to retain across the entire program and policy period.
• Local policies are issued in each country where the customer needs coverage, with premiums paid to the Zurich entity in that country in accordance with local laws and regulations.
• The local entities confirm receipt of the premiums and Zurich U.S. then pools them and returns the loss limit portion to the insured to use as the insured sees fit. In the event of a loss or losses, the customer reimburses Zurich up to the loss limit specified in the master policy while Zurich handles the claim adjustment and other policy administration.

This structure is like a steppingstone between a guaranteed cost program and a captive. It offers the simplicity of guaranteed cost, but with the flexibility of retained risk. It’s especially useful for companies that don’t have a captive and/or prefer not to use one.

Zurich Multinational also can now offer fully fronted Casualty policies, in cases where the customer wants to retain 100% of the risk. And Zurich Multinational has enhanced and streamlined policy administration and invoicing as well, in part through use of artificial intelligence tools.

“This is the next step in Zurich Multinational’s evolution of providing more program structure options, specifically loss-sensitive options,” Griffin said. “Zurich Multinational has a reputation for award-winning innovation, and we continue to simplify how large, global customers manage complex exposures across borders. We want to deliver convenience, coverage certainty, compliance with local regulations and overall peace of mind.”

See how Zurich Multinational can support your risk strategy.

About Zurich North America