Manufacturing Today - November/December 2016 - 19

RANDY CRAWFORD | COLUMN BY

Organizing communication around
all the players in a complex international placement can prove difficult
and expensive by creating the potential for uncovered claims. As such,
preparing an effective plan to facilitate communication between the
various parties can significantly avoid
confusion and possible uncovered
costly claims. There is no one right
way to structure an international program, but there are many ways to get
it wrong. Only the right risk partner,
with experience placing international
risks, can help an organization navigate the complex maze of foreign regulations and program options. mt

Randy Crawford is USI Insurance Services' national industrial
practice leader, specializing in alternative risk structures product
development and risk consulting. Based in Houston, Texas, Randy
leverages the USI ONE Advantageā„¢, a holistic, risk management
approach that uses proprietary analytics technology and local
and national resources to solve real business challenges.Randall.
Crawford@usi.biz.

NOVEMBER/DECEMBER 2016 manufacturing-today.com

19

E XPORTING

Keeping
Communication Flowing

P OLITICS

R EGIONAL MANUFACTURING

W ORKFORCE

O P E R AT I O N S

L EADERSHIP

T H E B AT T E RY S H OW

P RO F I TA B I L I T Y

Using locally admitted policies when
required can help manufacturing
firms avoid potential penalties levied
by foreign insurance regulators. Programs also can be structured with a
sublimit to fund potential tax liabilities using non-admitted insurance
policies. In many cases, using the
U.S. corporate tax rate as a baseline
for potential tax costs, a claim recovery could be reduced by as much as 35
percent. For example, a U.S. company
with foreign subsidiaries insured its
overseas risks using a U.S. issued policy. When the client suffered a covered
loss in Italy, it was difficult to move
the insurance funds to the Italian subsidiary without incurring a significant
tax event. However, the policy includ-

ed a sublimit to fund payment of tax liabilities, thereby protecting the client
from a $75,000 tax bill.

L AST PAGE

Ensuring Local Compliance

C OVER STORY

M ANAGEMENT

S U P P LY C H A I N

L EADERSHIP

D IALOGUE

Companies can have the best of both
worlds when opting for a master program that combines multiple local
policies issued in various countries
with a global policy in the multinational's home country. When properly structured and placed, a master
program combining three primary
lines of coverage - property, general
liability and auto - can provide premium cost savings of 20 percent to 40
percent. Case in point: After a formal
internal review, a large distribution
operation with several foreign owned
properties found out that switching

C ONTENTS

Going with a
Master Program

T ECHNOLOGY

M A N U FA C T U R I N G

each country has
unique regulations
and tax on insurance premiums, and
claim payments can
complicate the decision-making.

from a local placed admitted coverage structure to a master program
was more efficient and less expensive.
After modeling the loss potential, the
program was restructured, reducing
the premium cost associated with
operations in 26 countries by $1.3 million or 20 percent of the total international premium.

N EWS

P RO F I TA B I L I T Y

AH
S R EXPO 2016

C ANADA MANUFACTURING

L E A N

S U S TA I N A B I L I T Y

SERVICE

SPACE TECH EXPO

al manufacturing company with physical assets and operations in Taiwan
had flood coverage provided through
a non-admitted master program managed by the company's U.S. parent.
After several major floods in Taiwan,
the master program underwriters increased the flood pricing significantly. Subsequently, the local market
was evaluated and it was determined
that the Taiwanese insurance market
did not have the same view of the risk
and that, by moving the flood out of
the non-admitted program and into
local admitted coverage, the client
would realize substantial cost savings. Indeed, when the manufacturer
made this decision, it was able to save
$80,000 or 25 percent of the premium
for that line of coverage.


http://manufacturing-today.com

Table of Contents for the Digital Edition of Manufacturing Today - November/December 2016

Table Of Contents
Manufacturing Today - November/December 2016 - Cover1
Manufacturing Today - November/December 2016 - Cover2
Manufacturing Today - November/December 2016 - 1
Manufacturing Today - November/December 2016 - Table Of Contents
Manufacturing Today - November/December 2016 - 3
Manufacturing Today - November/December 2016 - 4
Manufacturing Today - November/December 2016 - 5
Manufacturing Today - November/December 2016 - 6
Manufacturing Today - November/December 2016 - 7
Manufacturing Today - November/December 2016 - 8
Manufacturing Today - November/December 2016 - 9
Manufacturing Today - November/December 2016 - 10
Manufacturing Today - November/December 2016 - 11
Manufacturing Today - November/December 2016 - 12
Manufacturing Today - November/December 2016 - 13
Manufacturing Today - November/December 2016 - 14
Manufacturing Today - November/December 2016 - 15
Manufacturing Today - November/December 2016 - 16
Manufacturing Today - November/December 2016 - 17
Manufacturing Today - November/December 2016 - 18
Manufacturing Today - November/December 2016 - 19
Manufacturing Today - November/December 2016 - 20
Manufacturing Today - November/December 2016 - 21
Manufacturing Today - November/December 2016 - 22
Manufacturing Today - November/December 2016 - 23
Manufacturing Today - November/December 2016 - 24
Manufacturing Today - November/December 2016 - 25
Manufacturing Today - November/December 2016 - 26
Manufacturing Today - November/December 2016 - 27
Manufacturing Today - November/December 2016 - 28
Manufacturing Today - November/December 2016 - 29
Manufacturing Today - November/December 2016 - 30
Manufacturing Today - November/December 2016 - 31
Manufacturing Today - November/December 2016 - 32
Manufacturing Today - November/December 2016 - 33
Manufacturing Today - November/December 2016 - 34
Manufacturing Today - November/December 2016 - 35
Manufacturing Today - November/December 2016 - 36
Manufacturing Today - November/December 2016 - 37
Manufacturing Today - November/December 2016 - 38
Manufacturing Today - November/December 2016 - 39
Manufacturing Today - November/December 2016 - 40
Manufacturing Today - November/December 2016 - 41
Manufacturing Today - November/December 2016 - 42
Manufacturing Today - November/December 2016 - 43
Manufacturing Today - November/December 2016 - 44
Manufacturing Today - November/December 2016 - 45
Manufacturing Today - November/December 2016 - 46
Manufacturing Today - November/December 2016 - 47
Manufacturing Today - November/December 2016 - 48
Manufacturing Today - November/December 2016 - 49
Manufacturing Today - November/December 2016 - 50
Manufacturing Today - November/December 2016 - 51
Manufacturing Today - November/December 2016 - 52
Manufacturing Today - November/December 2016 - 53
Manufacturing Today - November/December 2016 - 54
Manufacturing Today - November/December 2016 - 55
Manufacturing Today - November/December 2016 - 56
Manufacturing Today - November/December 2016 - 57
Manufacturing Today - November/December 2016 - 58
Manufacturing Today - November/December 2016 - 59
Manufacturing Today - November/December 2016 - 60
Manufacturing Today - November/December 2016 - 61
Manufacturing Today - November/December 2016 - 62
Manufacturing Today - November/December 2016 - 63
Manufacturing Today - November/December 2016 - 64
Manufacturing Today - November/December 2016 - 65
Manufacturing Today - November/December 2016 - 66
Manufacturing Today - November/December 2016 - 67
Manufacturing Today - November/December 2016 - 68
Manufacturing Today - November/December 2016 - 69
Manufacturing Today - November/December 2016 - 70
Manufacturing Today - November/December 2016 - 71
Manufacturing Today - November/December 2016 - 72
Manufacturing Today - November/December 2016 - 73
Manufacturing Today - November/December 2016 - 74
Manufacturing Today - November/December 2016 - 75
Manufacturing Today - November/December 2016 - 76
Manufacturing Today - November/December 2016 - 77
Manufacturing Today - November/December 2016 - 78
Manufacturing Today - November/December 2016 - 79
Manufacturing Today - November/December 2016 - 80
Manufacturing Today - November/December 2016 - 81
Manufacturing Today - November/December 2016 - 82
Manufacturing Today - November/December 2016 - 83
Manufacturing Today - November/December 2016 - 84
Manufacturing Today - November/December 2016 - 85
Manufacturing Today - November/December 2016 - 86
Manufacturing Today - November/December 2016 - 87
Manufacturing Today - November/December 2016 - 88
Manufacturing Today - November/December 2016 - 89
Manufacturing Today - November/December 2016 - 90
Manufacturing Today - November/December 2016 - 91
Manufacturing Today - November/December 2016 - 92
Manufacturing Today - November/December 2016 - 93
Manufacturing Today - November/December 2016 - 94
Manufacturing Today - November/December 2016 - 95
Manufacturing Today - November/December 2016 - 96
Manufacturing Today - November/December 2016 - 97
Manufacturing Today - November/December 2016 - 98
Manufacturing Today - November/December 2016 - 99
Manufacturing Today - November/December 2016 - 100
Manufacturing Today - November/December 2016 - 101
Manufacturing Today - November/December 2016 - 102
Manufacturing Today - November/December 2016 - 103
Manufacturing Today - November/December 2016 - 104
Manufacturing Today - November/December 2016 - 105
Manufacturing Today - November/December 2016 - 106
Manufacturing Today - November/December 2016 - 107
Manufacturing Today - November/December 2016 - 108
Manufacturing Today - November/December 2016 - 109
Manufacturing Today - November/December 2016 - 110
Manufacturing Today - November/December 2016 - 111
Manufacturing Today - November/December 2016 - 112
Manufacturing Today - November/December 2016 - 113
Manufacturing Today - November/December 2016 - 114
Manufacturing Today - November/December 2016 - 115
Manufacturing Today - November/December 2016 - 116
Manufacturing Today - November/December 2016 - 117
Manufacturing Today - November/December 2016 - 118
Manufacturing Today - November/December 2016 - 119
Manufacturing Today - November/December 2016 - 120
Manufacturing Today - November/December 2016 - 121
Manufacturing Today - November/December 2016 - 122
Manufacturing Today - November/December 2016 - 123
Manufacturing Today - November/December 2016 - 124
Manufacturing Today - November/December 2016 - 125
Manufacturing Today - November/December 2016 - 126
Manufacturing Today - November/December 2016 - 127
Manufacturing Today - November/December 2016 - 128
Manufacturing Today - November/December 2016 - 129
Manufacturing Today - November/December 2016 - 130
Manufacturing Today - November/December 2016 - 131
Manufacturing Today - November/December 2016 - 132
Manufacturing Today - November/December 2016 - 133
Manufacturing Today - November/December 2016 - 134
Manufacturing Today - November/December 2016 - 135
Manufacturing Today - November/December 2016 - 136
Manufacturing Today - November/December 2016 - 137
Manufacturing Today - November/December 2016 - 138
Manufacturing Today - November/December 2016 - 139
Manufacturing Today - November/December 2016 - 140
Manufacturing Today - November/December 2016 - 141
Manufacturing Today - November/December 2016 - 142
Manufacturing Today - November/December 2016 - 143
Manufacturing Today - November/December 2016 - 144
Manufacturing Today - November/December 2016 - 145
Manufacturing Today - November/December 2016 - 146
Manufacturing Today - November/December 2016 - 147
Manufacturing Today - November/December 2016 - 148
Manufacturing Today - November/December 2016 - 149
Manufacturing Today - November/December 2016 - 150
Manufacturing Today - November/December 2016 - 151
Manufacturing Today - November/December 2016 - 152
Manufacturing Today - November/December 2016 - 153
Manufacturing Today - November/December 2016 - 154
Manufacturing Today - November/December 2016 - 155
Manufacturing Today - November/December 2016 - 156
Manufacturing Today - November/December 2016 - 157
Manufacturing Today - November/December 2016 - 158
Manufacturing Today - November/December 2016 - 159
Manufacturing Today - November/December 2016 - 160
Manufacturing Today - November/December 2016 - 161
Manufacturing Today - November/December 2016 - 162
Manufacturing Today - November/December 2016 - 163
Manufacturing Today - November/December 2016 - 164
Manufacturing Today - November/December 2016 - 165
Manufacturing Today - November/December 2016 - 166
Manufacturing Today - November/December 2016 - 167
Manufacturing Today - November/December 2016 - 168
Manufacturing Today - November/December 2016 - 169
Manufacturing Today - November/December 2016 - 170
Manufacturing Today - November/December 2016 - 171
Manufacturing Today - November/December 2016 - 172
Manufacturing Today - November/December 2016 - 173
Manufacturing Today - November/December 2016 - 174
Manufacturing Today - November/December 2016 - 175
Manufacturing Today - November/December 2016 - 176
Manufacturing Today - November/December 2016 - Cover3
Manufacturing Today - November/December 2016 - Cover4
http://www.nxtbook.com/nxtbooks/knighthouse/mt_vol20_1a
http://www.nxtbook.com/nxtbooks/knighthouse/mt_vol19_6
http://www.nxtbook.com/nxtbooks/knighthouse/mt_vol19_6b
http://www.nxtbook.com/nxtbooks/knighthouse/mt_vol19_6a
http://www.nxtbook.com/nxtbooks/knighthouse/mt_vol19_5
http://www.nxtbook.com/nxtbooks/knighthouse/mt_vol19_5b
http://www.nxtbook.com/nxtbooks/knighthouse/mt_vol19_5a
http://www.nxtbook.com/nxtbooks/knighthouse/mt_vol19_4
http://www.nxtbook.com/nxtbooks/knighthouse/mt_vol19_4a
http://www.nxtbook.com/nxtbooks/knighthouse/mt_vol19_3
http://www.nxtbook.com/nxtbooks/knighthouse/mt_vol19_3a
http://www.nxtbook.com/nxtbooks/knighthouse/mt_vol19_2
http://www.nxtbook.com/nxtbooks/knighthouse/mt_vol19_2A
http://www.nxtbook.com/nxtbooks/knighthouse/mt_vol19_1
http://www.nxtbook.com/nxtbooks/knighthouse/mt_vol19_1a
http://www.nxtbook.com/nxtbooks/knighthouse/mt_vol18_6
http://www.nxtbook.com/nxtbooks/knighthouse/mt_vol18_5
http://www.nxtbook.com/nxtbooks/knighthouse/mt_vol18_4
http://www.nxtbook.com/nxtbooks/knighthouse/mt_vol18_3
http://www.nxtbook.com/nxtbooks/knighthouse/mt_vol18_2
http://www.nxtbook.com/nxtbooks/knighthouse/mt_vol18_1
http://www.nxtbook.com/nxtbooks/knighthouse/mt_20171112
http://www.nxtbook.com/nxtbooks/knighthouse/mt_201709
http://www.nxtbook.com/nxtbooks/knighthouse/mt_201709_v2
http://www.nxtbook.com/nxtbooks/knighthouse/mt_201708
http://www.nxtbook.com/nxtbooks/knighthouse/mt_201707
http://www.nxtbook.com/nxtbooks/knighthouse/mt_20170506
http://www.nxtbook.com/nxtbooks/knighthouse/mt_20170304
http://www.nxtbook.com/nxtbooks/knighthouse/mt_20170102
http://www.nxtbook.com/nxtbooks/knighthouse/mt_20161112
http://www.nxtbook.com/nxtbooks/knighthouse/mt_20160910v2
http://www.nxtbook.com/nxtbooks/knighthouse/mt_20160910
http://www.nxtbook.com/nxtbooks/knighthouse/mt_20160708
http://www.nxtbook.com/nxtbooks/phoenix/mt_20160506
http://www.nxtbook.com/nxtbooks/phoenix/mt_20160304
http://www.nxtbook.com/nxtbooks/phoenix/mt_20160102
http://www.nxtbook.com/nxtbooks/phoenix/mt_20151112
http://www.nxtbook.com/nxtbooks/phoenix/mt_20150910
http://www.nxtbook.com/nxtbooks/phoenix/mt_20150708
http://www.nxtbook.com/nxtbooks/phoenix/mt_20150506
http://www.nxtbook.com/nxtbooks/phoenix/mt_20150304
http://www.nxtbook.com/nxtbooks/phoenix/mt_20150102
http://www.nxtbook.com/nxtbooks/phoenix/mt_20141112
http://www.nxtbook.com/nxtbooks/phoenix/mt_20140910
http://www.nxtbook.com/nxtbooks/phoenix/mt_20140708
http://www.nxtbook.com/nxtbooks/phoenix/mt_20140506
http://www.nxtbook.com/nxtbooks/phoenix/mt_20140304
http://www.nxtbook.com/nxtbooks/phoenix/mt_20140102
http://www.nxtbook.com/nxtbooks/phoenix/mt_2013fall
http://www.nxtbook.com/nxtbooks/phoenix/mt_2013summer_vol2
http://www.nxtbook.com/nxtbooks/phoenix/mt_2013summer_vol1
http://www.nxtbook.com/nxtbooks/phoenix/mt_2013spring
http://www.nxtbook.com/nxtbooks/phoenix/mt_2012winter
http://www.nxtbook.com/nxtbooks/phoenix/mt_2012fall
http://www.nxtbook.com/nxtbooks/phoenix/mt_2012summer
http://www.nxtbook.com/nxtbooks/phoenix/mt_2012spring
http://www.nxtbook.com/nxtbooks/phoenix/mt_2011winter
http://www.nxtbook.com/nxtbooks/phoenix/mt_2011fall
http://www.nxtbook.com/nxtbooks/businessmedia/mt_2011summer
http://www.nxtbook.com/nxtbooks/businessmedia/mt_2011springsummer
http://www.nxtbook.com/nxtbooks/businessmedia/mt_2011spring
http://www.nxtbook.com/nxtbooks/businessmedia/mt_2011winter
http://www.nxtbook.com/nxtbooks/businessmedia/mt_2010fall
http://www.nxtbook.com/nxtbooks/businessmedia/mt_2010summer
http://www.nxtbook.com/nxtbooks/businessmedia/mt_2010spring
http://www.nxtbook.com/nxtbooks/schofield/mt_2010winter
http://www.nxtbook.com/nxtbooks/schofield/mt_2009fall
http://www.nxtbookMEDIA.com