The HUB Q&A:?How HUB Works to Help Clients Manage Global Risk

HUB International’s Global Risk Solutions offers multinational clients a fresh alternative to meet their global risk management and insurance needs.

Executive Vice President William Mulé discusses how HUB leverages its capabilities with global partners to service complex risks on a worldwide scale, and the company’s long-term vision for servicing global corporations.

Q: How does HUB work to solve clients’ complex global risks?

Will Mule (WM): HUB’s partner alliances give us a true global footprint. Here at HUB, we have significant North American expertise, and can help guide global companies who are expanding and opening new operations in the U.S. Our partners, who have a direct presence in over 90% of countries where our clients have business operations, bring the global perspective. Strategically we have experts throughout the world with deep regional knowledge and the ability to be on the ground with our clients to help them prepare for and manage any risk that comes their way. ?

Q. Tell me more about how HUB helps clients manage regional risks.

WM: At HUB we have experts who understand the global landscape, and boosted by our partnerships, are able to offer in-depth knowledge of local markets, local policies and local and regional regulations around the world. For example, if you purchase a liability policy in Italy, you need to attach an employer’s liability component — something that is not common in other countries and could be overlooked. The benefit of having local expertise also comes into play when there is a claim. With a local presence through our partnerships, there are no communication delays that could hamper a quick resolution. We can keep claims moving quickly so our clients do not suffer long delays in getting operations back up and running.

Q: What are the main global risk trends today that are keeping clients up at night?

WM: Cyber is a big issue: The threat of data breaches keeps clients up at night, and there have been some hiccups in the cyber insurance market in the last few years that have affected capacity and coverage. Wearables are also affecting cyber exposures. There’s an interesting new phenomenon where employers are starting to look at people's health more and gaining access to personally identifiable information, which bleeds into the cyber space. To complicate matters, each country sees the privacy aspect around personal information differently. For example, in Europe, you’ve got the General Data Protection Regulation rules for data protection, which we don’t have in the U.S. That’s why having that global network is so important.

How have you worked together to solve a problem for a client?

WM: One of our partner’s prospects in Europe was unhappy with the broker they were working with for U.S. operations. We completed a review of their U.S. insurances and found gaps in coverage, limits that were too low and many other risk issues. After we rectified the problem, HUB was given the appointment to become their broker in the U.S. and they decided to have our partner conduct a review of their global program and are now in the process of making them the broker of record for the whole of their international business.

Q. In the U.S., nuclear verdicts (jury awards greater than $10 million) continue to increase in both number and size. What should global clients know about this trend?

WM: Nuclear verdicts are a significant concern that cuts across industries. About a quarter of all nuclear verdicts are from product liability claims, and about 15% are from premises liability claims. Companies outside of the U.S. may not be aware of the significant exposures that product and property liability present, and the high limits of insurance coverage they may need to protect themselves.

Q. What does today’s global risk landscape look like and how do you stay on top of changes? ???

WM: Several geopolitical trends are shaping our industry. The global macroeconomic climate is changing, with foreign direct investment moving from China to India. And there’s significant political risk. China and Taiwan are on a knife edge right now. There’s conflict in the Middle East, the Russia/Ukraine war is still ongoing, and now the latest situation in Israel. With geopolitical risks changing so quickly, we need strong partners to keep us up to date on anything that’s occurring around the globe that will impact our clients. Through our relationship with global partners, we can get real-time updates on events and emerging risks to help protect our clients, their people and their property. ?

Q. What sets HUB apart from others in the industry?

WM: Our partnerships enable us to extend our reach and help larger and more complex multinational companies. We’re still new to this space, so we need to prove ourselves and build our reputation. Our willingness to work hard to find solutions for our clients sets us apart from the bigger brokers who may not be as responsive or communicative. Working in collaboration to do the best we can for our global clients is very important to us.

For more information visit HUB’s Global Risk Solutions.