Mapping executive risks on an international scale: Howden’s unique approach

In this context, it can be difficult for a company to determine the level of protection that is truly suitable for its officers. Faced with this complexity, several questions arise:

• How to determine, country by country, the need, or not, to establish a local police force?
• How to optimize the coordination between the contract taken out from France and the policies taken out locally?

Our Howden experts accompany multinational groups on a daily basis. Their deep understanding of international regulatory environments and the workings of Directors' Liability insurance policies allows them to enlighten companies' decisions and thus secure the protection of their executives. 

Our experts, Anaïs Noël - International Director, and Paul Huchet - Head of Financial Risks Insurance, provide their insights on these challenges and on how Howden supports international companies.

Each country has its own legal framework in terms of governance, taxation, competition, and labor law. Depending on the jurisdictions, leaders may be more or less easily held accountable, with sanctions ranging from simple fines to imprisonment, depending on local laws and practices. 

When a company operates in many countries, it becomes difficult to clearly identify what is essential in terms of local regulatory requirements, but also to assess the level of risk actually incurred, taking into account customs, the severity of authorities, and judicial practices specific to each territory.

Mapping Executive Liability Risks involves analyzing in a concrete manner the nature of the risks to which each executive is exposed, as well as the level of guarantee necessary to effectively prevent them. On a country-by-country basis, it is important to assess both the local sensitivity to risk and the legal options available to protect executives, whether de jure or de facto. 

This approach allows for informed decision-making based on specific criteria to tailor coverage to regulatory requirements and local practices, which can vary significantly from one territory to another.

In some countries, challenges to leaders are so frequent and the sensitivity to risk so high that a centrally managed program from a policy taken out in France would be unsuitable, even counterproductive. 

Thanks to our preliminary analysis, it becomes possible to make an informed decision on the optimal structuring of the insurance program, in order to meet the specific needs of each subsidiary and its leader.

The Financial Lines practice is at the heart of the group's DNA, as it is one of its historical businesses. Howden has developed a true international network around this expertise, bringing together the best specialists to offer our clients a high level of analysis, but also enhanced negotiation capabilities. 

This organization allows us to be particularly effective in placement strategy and to respond optimally to the challenges our clients face.

The prior risk analysis of Directors' Liability has allowed several of our clients to deeply review their perception, while optimizing the structuring of their insurance program. This work was an opportunity to co-build with them a true risk management policy regarding Directors' Liability, aligned with their real issues and international exposures. 

When certain claims materialized, we were able to measure how essential it is to adjust the insurance structure to the reality of the field and the specificities of local legislations. A well-calibrated coverage then makes all the difference, both for the protection of directors and for the overall risk management.

We only need a simple set of information - including the company's organizational chart, list of locations, and types of activities - to start this analysis.