Here are five areas that prove to be challenging to multinational insurers.

Language barriers. Let's start with an obvious but major challenge for any carrier operating in different geographies: different languages. Changing the language changes the product in basic ways such as how it is presented, described and documented. As soon as an insurer begins to operate in another country, the organization needs to produce materials and communicate with consumers in culturally familiar ways regardless of the channel, whether it's a call center, online or via mobile device. Of course, terminology differs from one language to another, and simply translating text into another language may not be effective. The way you would describe a policy in one country might not convey the intended meaning in another, for instance.

Varied product definitions. Insurance fulfills a need in the marketplace and that need varies depending on the demographic makeup of a particular country, who's buying coverage and how they're buying their policies. Some European countries, for instance, have a large gig economy or have embraced on-demand insurance, while others may follow a more traditional, heavily-regulated and very standard definition of what an insurance product is. Carriers might define a motor product one way in the U.K., but it might be very different in Spain or Portugal, for instance, even though we may think of the products being the same.

Differences in sales and distribution. The way in which products are sold and distributed can vary considerably from one country to the next. Selling an insurance product can be very different if you're selling direct — over the Web or via an app — or selling in an aggregator market. In the U.K., for instance, nearly all of the personal lines business is sold through an aggregator, which affects how carriers must package, present and differentiate a product. The mix of channels — direct, broker, agent or third-party intermediary such as banks and retailers — and their role in the value chain differs.

Regulatory mandates. Regulatory environments vary significantly between countries, and some governments may mandate specific coverage while others do not. Governments also define insurance products, pricing, claims processing and mandatory or required versus optional coverages. Insurance administration can also vary between countries. Some countries require a 12-hour or six-hour acknowledgement of a claim event or first notice and payment within 36 hours, if not contested, for instance, while other countries might not have the same requirements.

Differences in regulatory reporting requirements. Regulatory reporting requirements also vary considerably. When operating in different geographies, carriers have to be on top of what, when and where they have to report, how often and at what level of detail. And access to data from core platforms is critical to meeting these requirements.

Of course, there are plenty of technology ramifications and requirements for operating across geographies. But the right technology platform can help insurance organizations successfully cope with the various differences.

Special Reports /

Five ways the right technology empowers multinational insurers

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