Second, there is underwriting consistency with one point of leverage. Third, loss control programs can be improved and expanded under a global auto program. Fourth, and the key issue from Ms. Demaret s perspective, claims management can be facilitated through one insurer system as compared to a large number of systems. Fifth, centralized control is not only an important focus but also a necessary requirement prior to putting the program into place. Sixth, a global program offers a great deal of flexibility.
Countries can vary a great deal on insurance requirements.
Numerous factors have impeded the progress of auto consolidation programs as compared to some of the other lines. Nearly every country requires that an admitted insurer provide coverage, so it is essential to utilize an insurer with a global reach. In addition, gathering documentation has proven to be a big hurdle for many companies. Ms. Demaret noted that in Italy, the rule is one auto, one policy. She amplified this point by saying, The documentation required for an auto policy is prohibitive.