IUA Circular 057/20
Financial Interest Clauses (FINC)- An Update
with Praveen Sharma, Managing Director, Global Leader of the Insurance Regulatory & Tax Consulting Practice Marsh
Event Date: Tuesday 23 June 2020
3pm for 1 hour (London/British Time)
This IUA on-line market briefing will highlight how FINC fits into the core global programme structure.
Contact: Deborah Finch, IUA Events Manager (020 7617 4451)
This is a free event, but names and email addresses of all attendees are required for registration. Please click here to register.
DIAL IN DETAILS:
Please adhere to on line etiquette during our presentations. We kindly ask you to mute your microphone and video upon commencing the link and to use the Chat application for any questions, which will be addressed by the speaker at the end of the presentation.
The event will commence at the stated time and we strongly advise that you dial in 5 mins prior to this to ensure punctuality.
Global insurance policies, issued to a parent company, often include a worldwide coverage territory and/or broad named insured wording to cover not only the parent company, but also its worldwide operations.
Originally developed for property programs, FINC (Financial Interest Clauses) enable a parent company to be insured for its financial interest in its subsidiary’s loss where either no local policy is issued or the local policy limit and conditions are inadequate. As a policy construction mechanism, their use and effectiveness has been subject to much debate. Recent case law has shed further light on their use with potential complications in expressly limiting coverage under the global or master policy to those territories where non-insurance is not permitted.
At this IUA Market Briefing presentation, our speaker will encompass the following:
- The core principles underpinning FINC – value to the contractual parties
- The history and evolution of FINC
- How FINC fits into the core global programme structure
- Common misconceptions on what FINC’s are designed to do and how they work
- Validating the concept – recent case law / regulatory approaches
- Future use
Praveen Sharma, Managing Director, Global Leader of the Insurance Regulatory & Tax Consulting Practice at Marsh has been instrumental in the development of FINC as a concept and in practical usage. Sharma is a Chartered Accountant with extensive experience dealing with accounting, regulatory and taxation issues that affect risk-financing arrangements, including global insurance policies, captive vehicles, and alternative risk-transfer mechanisms.
Sharma joined Marsh from Aon, where he was head of Regulatory & Compliance for the region comprising Europe, the Middle East and Africa, a post he held since 2001. He also advised multinational companies on insurable risk optimization strategies, including accounting, regulatory, and taxation issues. He was a tax adviser at KPMG and Ernst & Young for 14 years as, and has been “involved with the management of UK corporate tax issues for some of the world’s largest insurance companies.”
DISCLAIMER: The market briefing presentation materials and speaker comments therein were prepared solely by the presenter(s) in their personal and professional capacity. Any materials or opinions expressed do not necessarily represent the views of the IUA and IUA does not bear any responsibility for, or liability to, any parties in respect of the accuracy, legality or overall content of the presentation or any other comments made by speakers or attendees during the market briefing.
As a member of the CPD (Continuing Personal or Professional Development) Certification Service the IUA is committed to providing high quality training activities. Our market briefing events are certified as being suitable for CPD purposes. To obtain a self assessment form for any particular event please email Deborah Finch. These forms will be issued after each individual event upon request.
For events held remotely, we will require a note of your attendance with telephone/mobile number.