Head office of the new IPMI unit of a large multi-line insurer with numerous offices/licenses globally

Explain the 'grey' world of IPMI regulation and how to operate within it, to the non IPMI experienced senior mgmt of a new IPMI subsidiary

As the client subsidiary scales its operations, it is increasingly active in more countries, several of which have complicated and/or unclear rules and practices about whether and how health insurance products can be sold by foreign companies for residents (either local or foreign). The client’s head office was concerned about the perceived increase in compliance risk the mother company will face from this IPMI subsidiary and whether it should consider imposing stricter rules on it. To address these concerns, the client asked MGG to create a white paper explaining the regulatory risks of 15 countries globally (including USA, UAE, Brazil, Venezuela, Hong Kong, China, Kenya and Thailand among others).

As the client subsidiary scales its operations, it is increasingly active in more countries, several of which have complicated and/or unclear rules and practices about whether and how health insurance products can be sold by foreign companies for residents (either local or foreign). The client’s head office was concerned about the perceived increase in compliance risk the mother company will face from this IPMI subsidiary and whether it should consider imposing stricter rules on it. To address these concerns, the client asked MGG to create a white paper explaining the regulatory risks of 15 countries globally (including USA, UAE, Brazil, Venezuela, Hong Kong, China, Kenya and Thailand among others).

MGG advised the client to avoid selling IPMI offshore in large and mature domestic PMI markets with a significant ‘large group’ segment, as contract risk is often very high. In general, location risk was very low. The client's HO allowed them to continue to continue growing internationally with few top down restrictions.