The business case for multinational insurance: Key considerations for brokers and policy holders

Managing insurance centrally enables multinational companies to close policy gaps, access niche coverage, and avoid duplication — while ensuring regulatory compliance and greater consistency across a firm’s insurance portfolio. It’s a welcome solution for international companies headquartered in Hong Kong and the rest of Asia operating globally. The following article was written with the assistance of Glenn McCubbin, Head of Global Network and Multinational Technical Underwriting, QBE

An acquaintance recently joked with me that now is a great time to be working in insurance. Everywhere you look, they quipped, there are risks that need to be managed. Admittedly, this was a light-hearted comment, but as the saying goes, many a truth is said in jest.

Hong Kong businesses, like their peers elsewhere, are today subject to a wide range of acute risks. From cyber threats to talent shortages, supply chain disruption, trade tensions, growing geopolitical friction and much more — businesses are exposed to an array of threats that can easily disrupt daily operations. These issues are expected to prolong for some time: over half of respondents to the World Economic Forum’s recent Global Risks Report 2025 for example, anticipate an unsettled global outlook over the next two years; another one-third expect “turbulence”, while 5% expect a “stormy outlook”.

Multinational companies (MNCs) especially, are vulnerable to today’s market turmoil, irrespective of where they operate. These include exposure to economic, political and regulatory risks, as well as operational and reputational issues. However, such exposures haven’t dampened the ambition of Hong Kong companies seeking to expand overseas. For instance, in 2023, Hong Kong companies invested US$15 billion into the Association of Southeast Asian Nations, becoming the trading bloc’s third-largest external investor after the US and mainland China.

Likewise, overseas MNCs are continuing to invest in Hong Kong. In 2024, there were almost 10,000 companies based in the special administrative region, with almost 14% of these headquartered in the US and over 7% of these based in the UK. What these statistics tell us, is that whether a Hong Kong-headquartered company or an overseas MNC operating in Asia, businesses are continuing to expand into new markets, despite the noise appearing in the mainstream media — as it happens, the Hong Kong economy posted robust growth for Q1 2025, irrespective of global headwinds.

Closing the coverage gap

As they expand into new markets, MNCs should consider purchasing insurance and other risks solutions centrally for all of the markets where they operate. This is because the business case for multinational insurance can be highly compelling for certain types of companies.

In some instances, MNCs may not be able to get adequate risk coverage at the local level, but will be able to do so as part of a global solution. For instance, a local insurer may not be able to provide coverage for a particular natural catastrophe, yet a global solution might include coverage for this. Purchasing insurance centrally gives greater oversight of an MNCs insurance portfolio as well, making sure that all risks are adequately covered.

Multinational insurance programmes also tend to instil consistency of coverage across all markets as well. In addition, they add greater convenience for policy holders, as typically brokers and underwriters have dedicated points of contact, acting as one-stop-shops for MNCs and their insurance needs.

Flexibility is also a key benefit typically associated with multinational insurance programmes. Policies are typically tailored to the company’s unique needs, while global oversight ensures that each local entity is compliant with local laws, and that MNCs overall are more resilient to global risks.

Cost and coordination considerations

An economies of scale opportunity exists when considering a centrally controlled multinational programme over a decentralised, locally purchased solution. However, pricing needs to be considered in the context of the potentially broader coverage available within a multinational programme structure.

For example, in emerging markets especially, cheaper coverage may be offered in a locally purchased policy with a local provider. However, such policies may involve lesser coverage and lower protection, with broader coverage elsewhere unlikely to be available. This therefore increases the risk of financial losses should a risk event occur. Time and again, there are instances where local insurers offering low premiums decline to pay claims.

A further consideration is coordination. Compiling risk information from different offices across different time zones and teams can be highly time-consuming. There is much liaising between the customer, broker and underwriter to understand the former’s needs in different markets, and to ensure that they obtain the right solution for their unique needs. Patience is required by all parties.

Then there is the issue of local ownership. Within many MNCs, insurance is purchased locally by in-market executives. This is understandable, as they have a good understanding of the dynamics of these markets, including local risks. However, purchasing insurance separately from peers in other countries tends to lead to protection gaps. Similarly, it may also result in duplication, where policies held in different markets overlap one another, therefore creating cost inefficiencies at the global level.

Coverage, service, claims

Once the decision to purchase a multinational insurance programme has been made, the next issue is choice of insurer. Admittedly, QBE isn’t the only carrier offering such insurance. However, our focus on coverage, service and claims stands out when compared to our peers.

First and foremost, through our presence in multiple markets around the world, and with our partnerships with carriers in other markets, we are able to offer a wide range of local policies in over 180 countries and territories. Our partners have also signed contractual agreements to meet service and quality criteria, and we undertake due diligence to ensure the highest quality outcomes.

Central to our multinational insurance offering is people: not only do we pride ourselves in going the extra mile to understand with our broker partners the needs of MNCs and tailor an insurance solution; our team is highly knowledgeable of local regulations, therefore ensuring that client plans are compliant and relevant. The issue of evolving regulations is noteworthy here in Asia, with over 20 different jurisdictions across East Asia, Southeast Asia, and South Asia, all at different stages of maturity in terms of regulation. Keeping up with these changes is time consuming and MNCs may not have the resources to keep on top of these. This is an area where QBE can help.

Technology, too, contributes to the client experience. From drones examining properties in the aftermath of an extreme weather event, to data analytics examining claims patterns and trends, QBE is leveraging a wide range of technology to ensure that the risks that we underwrite are appropriately examined and priced, and that in the event of a claim, these are processed promptly. Regarding claims, we take great pride in handling these with urgency. We also work with brokers and policy holders to analyse their claims, and find ways to minimise these, which in turn can lead to lower premiums.

To discuss any of the topics mentioned above, connect with me on LinkedIn. Stay up to date with our risk Insights and expertise by following QBE Asia

This article was first published on May 14, 2025.