Local National Insurance

When a company expands globally and needs to hire local national employees, local national insurance is something that should be taken very seriously. In 2009, most countries around the world have non-admitted insurance laws that apply to extending insurance to local nationals. A local national is an employee hired to work in their home country for the multinational employer. For example, a Mexican national working in Mexico.

Non-admitted insurance laws for local nationals means the country legally requires that local national insurance solutions come from locally licensed and admitted insurers. Cutting through all the smoke, the reason for this is basic protectionism when it comes to most countries other than the U.S. and the EU.

In the U.S. many companies are required to work with admitted and locally licensed carriers by law to protect the consumer from insurance companies that may not be financially strong, or offer poor products. The main reason it's done abroad is so local revenue comes back to local companies for foreign national insurance and so U.S. and EU companies don't enter a country and steal away all the business from whatever local insurance companies exist in the country.

No matter what the reason, companies should take this seriously. Local national insurance that is placed with a non-admitted carrier is criminal in many countries. Employers should not take the easy way out and place local nationals with offshore or non-admitted insurance carriers.