Many companies insure global risks centrally via a master insurance program. However, when it comes to how the costs of these policies are allocated across subsidiaries, branches, or countries, things quickly become complex.
And this is not primarily a question of internal cost distribution – it's about complying with tax and regulatory requirements:
- All insured entities must contribute their fair share
- Under the arm’s-length principle, no group entity may be insured free of charge. Premium allocation must be transparent and in line with market standards, otherwise there is a risk of profit adjustments and back taxes during tax audits.
- Allocation must be documented and traceable
- Whether based on revenue, headcount, asset value or other KPIs: Premium allocation must be based on transparent, auditable criteria and be properly documented. Missing or inconsistent documentation often results in challenges by auditors or tax authorities.
- No direct premium charging in non-admitted countries
- Entities in jurisdictions such as Brazil, India, or China may be considered in the internal allocation process, but regulatory restrictions prohibit direct recharging of premiums. A compliant allocation must therefore reassign these premium shares to other group companies, typically under a Financial Interest Cover (FInC) approach.
In practice, many companies either do not address this issue systematically, or rely on complex, error-prone Excel spreadsheets. Often, there is a lack of clearly defined and consistently applied allocation rules, as well as of audit-ready documentation.
Our solution replaces such manual, ad-hoc approaches with a fully automated, transparent, and audit-proof process.
To meet tax and regulatory requirements, we have developed a fully automated solution that allocates insurance premiums across your corporate group in a compliant, traceable, and defensible manner.
This is not a generic off-the-shelf tool, but a tailored automation of your company-specific allocation logic. For each insurance policy, different KPIs and allocation mechanisms can be configured – including minimum premium thresholds, country-specific FInC limitations, or other structural requirements.
Each allocation step is fully logged and documented in a structured audit log, provided as a formatted PDF report. This ensures that premium allocation can be verified at any time by internal or external stakeholders.
From the consolidation of input KPIs to the generation of allocation-based invoices, our solution seamlessly integrates into your existing processes. Results can be exported in any desired output format (e.g. SharePoint list, Excel, CSV) and transferred directly to downstream systems via API.
We implement the solution using your preferred no-code or low-code platform. If your organization uses Microsoft 365, the implementation can be realized without additional licensing costs in SharePoint and the Microsoft Power Platform. Alternatively, we also support implementation in BRYTER, Betty Blocks, or other platforms already in use in your environment.
Thanks to no-code/low-code technology, these custom automations can be developed in a short time and at reasonable cost. And by leveraging existing IT infrastructure, lengthy cloud risk assessments and procurement procedures can often be avoided entirely.
