Specialty risks covered more frequently through global insurance programs

Specialty lines are a growing factor in multinational insurance programs.

“The frontier of coverage more and more is nonphysical damage types of coverage,” said Randy Schreitmueller, vice president of global services and market relationships at FM Global in Providence, R.I. “Property insurance in the past focused on owned facilities of the client. It didn't respond to contingent exposures.”

Now, Mr. Schreitmueller said, companies are using more levels of suppliers and their insurance must reflect that. For example, FM now lets policyholders choose at the time of a claim whether to base contingent losses on gross earnings or gross profits.

Another specialty area gaining more emphasis is coverage related to computer networks, he said.

Directors and officers liability, a line commonly purchased for U.S. risks, is gaining increasing use abroad.

Allianz Global Corporate & Specialty expects to write 1,000 local D&O policies this year, up from 333 in 2011, said Vinko Markovina, New York-based global practice leader for international insurance solutions.

Other specialty lines commanding more attention include: business travel accident, marine cargo, and terrorism and political risk, said Michael Furgueson, president of Ace USA's multinational client group in New York. The reasons for that growth are as varied as the lines, ranging from natural disasters in the case of supply chain coverage, to an increased emphasis on regulation and corporate governance for D&O.