A dedicated insurance framework for recurring transfer pricing risks
TP Insurance provides a dedicated insurance framework for recurring transfer pricing tax risks
arising from ordinary intercompany transactions and multinational operations.
Transfer pricing risk is becoming a recurring corporate issue
Multinational enterprises are increasingly exposed to transfer pricing scrutiny across jurisdictions.
Intercompany financing, services, goods and intangibles may be assessed differently by different tax authorities,
even where the taxpayer has acted in good faith and maintained appropriate documentation.
The result may be double taxation, advisory and legal costs, lengthy procedures and management disruption.
Why it matters
- Recurring intercompany transactions can generate repeated exposure.
- Compliance alone may not always prevent tax assessments.
- Defence costs may be disproportionate to the underlying risk.
A dedicated insurance solution for recurring transfer pricing risks
TP Insurance introduces a specialty insurance solution designed around recurring intercompany transactions
and ordinary multinational operations.
Unlike traditional tax liability insurance products, typically structured around extraordinary transactions
or M&A-related exposures, TP Insurance focuses on recurring non-M&A transfer pricing risks.
Key differentiators
- Focus on recurring intercompany transactions.
- Streamlined underwriting process.
- Broker and advisor-friendly distribution.
Coverage designed around transfer pricing tax assessment risk
TP Insurance solutions are designed to cover additional tax liabilities arising from transfer pricing assessments
linked to recurring intercompany transactions, within the applicable policy limits and terms.
The solution is primarily designed for recurring transfer pricing risks with insured limits up to EUR 1 million per risk.
Coverage may include
- Additional transfer pricing tax assessed by tax authorities.
- Advisory and legal expenses connected with a notified transfer pricing claim.
- Claims handling support and negotiation assistance.
Policy framework
- Advisory and legal costs generally covered up to 10% of the insured policy limit.
- Protection intended for risks connected with the previous five years of activity.
- Annual renewable policy structure for continuity of protection.
A risk management tool for CFOs, tax directors and multinational groups
TP Insurance is designed not only as an indemnity product, but also as a practical governance and compliance tool.
It helps companies transform uncertain transfer pricing exposure into a structured and predictable insurance framework.
The solution supports
- CFO governance and risk management processes.
- Audit and compliance discussions.
- Management visibility on transfer pricing exposure.
- More predictable budgeting of transfer pricing risks.
Who it is designed for
CFOs, Tax Directors, Multinational Groups, Brokers, Tax Advisors, Auditors and Insurance Market Participants.
Ready to discuss your transfer pricing risk?
Contact TP Insurance to learn more about our dedicated insurance solution for recurring transfer pricing tax risks.
