• Financial interest insurance provides insurance coverage for the parent company against the risk of damage to the financial interests of the parent company in its uninsured local subsidiaries. This means that if the local subsidiary cannot be insured directly by the global insurance company under the master policy for licensing, regulatory or other reasons, the parent company is nonetheless insured due to its financial interests in that subsidiary. Thus, if the subsidiary incurs losses, the parent company covers its financial interest in these losses incurred by the subsidiary.