St. Paul Emphasizes Global Reach

Speaking to an invited group of agents and brokers, Ms. Preston explained that after coming to St. Paul, one of the first actions taken to reorganize the company by Jay S. Fishman, chairman and chief executive officer, was to close small international operations. The reason was that they could not compete with the major European insurers. The move left St. Paul with three overseas company operations in the United Kingdom, Ireland and Canada.

In 1999, the company began forming partnerships with foreign insurers. The intent was to provide insurance coverage and services for domestic companies looking to do business overseas, she said.

Today, explained Frank Makovec, regional international manager for the Northeast region, St. Paul has formed contracted partnerships with insurers in 80 countries to provide insurance and related services.

"These are people who we can go to and who will provide answers," noted Mr. Makovec. He added that the company paid attention to forming relationships with financially sound companies that provide underwriting and claims services for St. Paul clients.

In addition to these partnerships, the carrier designed "St. Paul Global Companion," which the executives explained is designed to provide consistent and clearly defined coverage for a wide range of international risks.

Ms. Preston said St. Paul is looking to make its product available to "all domestically appointed agents." Accounts must have a minimum premium of $2,500 to qualify for the comprehensive international product, she said.

The need for this program, Ms. Preston pointed out, is especially important for technology companies90 percent of which have some form of foreign exposure, she said.

Risks, she said, can range from a business striking out in a foreign territory for a trade show to the development of manufacturing overseas. Coverage provided by St. Paul ranges from general liability to workers' compensation to specialty lines such as kidnap and ransom insurance, which is limited to traveling executives, and other services for insureds on the road outside the United States.

"Our focus is to round out an account where we have domestic business with international interests," said Ms. Preston. "We are trying to provide a consistent approach so the service looks seamless and there is the same consistency in coverage and prices for the domestic and international risk."

Kevin S. Clark, international account executive for technology, explained that one feature St. Paul offers is "World At A Glance," which can be found through the www.stpaul.com Web site. The site gives information about an individual country, including language and demographics. Of most importance to an agent or broker is a detailed account of the compulsory coverage needed in each country.

Limits have been increased for the Global Companion program and forms updated to minimize the need for endorsements, noted Terry Kim, underwriting manager of global accounts. There is also language covering currency devaluation so the policyholder does not see the value of the policy decline because of currency fluctuations.

Another feature of the program, said Michele Midwinter, assistant manager for New York City technology, is that tech risks are now included under commercial general liability. Before, she said, technology risks were written under a separate form.

Global Companion is not for foreign-headquartered companies, the St. Paul executives said. However, St. Paul would provide coverage and services for foreign companies that have secured coverage through a partner insurer overseas. The partner insurer would have to seek reciprocal coverage through the St. Paul. Mr. Makovec said no foreign insurer partner could refuse to pay a claim without St. Paul's permission.

This program represents a firm commitment by St. Paul to be a player in the global market for domestic clients, said Mr. Preston, who noted that the program will remain in effect after the St. Paul-Travelers merger is completed.

Additional information about Global Companion can be found at www.stpaul.com/international .

Reproduced from National Underwriter Property & Casualty/Risk & Benefits Management Edition, March 25, 2004. Copyright 2004 by The National Underwriter Company in the serial publication. All rights reserved. Copyright in this article as an independent work may be held by the author.