Chris Maleno, senior vice president, ACE Group & division president, ACE USA
Chris Maleno was appointed senior vice president of ACE Group in March 2014. In addition, he continues to serve as division president, ACE USA, a position he has held since March 2013. In this role, he oversees all operations for ACE’s US-based retail commercial property and casualty franchise.
Global management liability exposures related to cyber risks is a top area of concern for corporate boards. When we met with ACE’s Client Advisory Board in February, cyber, not surprisingly, was the most popular topic.
Cyber risks continue to evolve–leaving corporate boards open to a number of potential exposures. A breach can easily jeopardize an organization’s financial stability, security and reputation. It’s important for boards to stay attuned to cyber risks so they can properly protect themselves, their shareholders and customers. Insurance has a role to play, alongside developing proper controls and monitoring systems, to help mitigate the risk.
Globalization will present an ever-changing and growing mix of challenges.
We’re seeing more of our clients expanding into new geographies. Sometimes it’s just over the border into Canada, but more and more often we’re seeing them expand into Latin America and Asia.
Geopolitical risks appear overnight. Unstable governments can invalidate contracts and agreements. Before businesses decide to expand into new international markets, it’s important for board members and directors to have a good understanding of potential global D&O risks. In some instances, they can be personally held accountable for legal, regulatory and legislative violations throughout various foreign jurisdictions. They need to make sure their insurance program provides the coverage, services and guidance they need, both locally and globally, and that their carrier offers the right combination of expertise and breadth of coverage.
The combination of regulations, litigation and legislation all influence multinational risk exposures.
Global expansion can create gaps in insurance programs—for example, if you’re entering a new market with geopolitical exposure, and you don’t have a partner to help you navigate local laws, regulations, cultural practices and multinational claims, it can be an enormous risk and an enormous undertaking to understand.
Companies doing business in multiple countries face different laws and regulations in each country in which they operate. Insurance policies that don’t comply with local regulations may not provide the company and its board and directors with adequate coverage.
I can’t stress enough how important it is that companies and their boards work with a carrier that has both the financial strength and a strong international presence to give them the confidence to grow globally.
Managing global executive risks is challenging. There are some insurers who do it better than others. ACE has feet on the ground in 54 countries, part of our network of 200 countries. Our Professional Risk business unit places approximately 600 foreign underlying policies annually as it relates to management liability. Because of this extensive global network and our experienced underwriting team, we consider ourselves the experts on the Good Local Standard, something businesses look for in a carrier.
We see globalization as not only a growth opportunity for ACE, but as an opportunity to be a more valuable insurer who can address the emerging global management liability exposures faced by US-based multinational companies.
It’s what keeps my customers and brokers up at night that has me and my team constantly thinking of ways to ease their concerns. But, fortunately, many large companies are in a strong position to protect their directors and executives. It’s mid-market companies that are struggling the most. Their management liabilities are not that different from a large multinational, but their resources can be far more limited. ACE is actively supporting this segment with the appropriate level of insurance solutions so they, I hope, can sleep better at night.
