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 International Underwriting Association (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