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International issues have been a feature lately of events organised by Igrea. Primarily because Spanish firms have been expanding their global footprint - as Spain's economy remains in the doldrums - and are learning new ways to do business in the process.
They have met considerable challenges, even in other developed markets such as North America. In some tenders, companies are asked to present their track records of losses in the US, which is not feasible for those that have just got into the market. In fact, even insurance companies may refuse to provide quotes to potential buyers without a verifiable insurance history in the country, noted Jaime Echanove, Business Development Manager at Willis in Dallas.
Another difference, highlighted by Rogelio Bautista, Abengoa's head of risk management and member of Igrea's board, is the fact that companies in Spain sometimes work directly with insurance firms rather than going though brokers. In the US, however, market practice necessitates they must work with an intermediary. "Without a broker, insurance companies do not even give you a quote", said Mr Bautista.
Daniel San Millan, President of Igrea, said a multi-line, multi-year programme with significant levels of retention is a good option for corporates. One of the reasons is that a multi-line, multi-year programme could require extensive use of a captive. But the captive's capital would have to be considerably enlarged in order to comply with tighter solvency rules whilst at the same time it takes higher levels of risks, explained Luis Basabe, Managing Director of Marsh in Spain.
Multi-line, multi-year policies are also a hard sell in Spain because they represent a complete change in philosophical outlook, Mr San Millán said. "But it opens up a new world where the company can work with a focus on its own losses", he added.