Gains with multinational pooling
With multinational pooling you take the insurance contracts of your company’s subsidiaries insured through local insurance companies around the world, and combine them into an international portfolio, called a pool.
How does it work?
First you consolidate the data from all the contracts and countries in your pool to produce an overall profit and loss account. By balancing any losses in one country against gains in another, we can calculate the overall experience of your company-specific pool.
If there is an overall positive balance, the pool will pay it out in cash as an international dividend. If there is an overall negative balance, usually due to unexpectedly high claims, the pool will not ask you to compensate, unless you have opted for a self-retention.
Internationale Dividends are based on Margins
When a multinational’s local plans are placed in a pool and internationally experience rated, the additional spreading of risk through the creation of a larger portfolio means that the margins required by local insurers can be smaller. The pool will return any unused margins to you as an international dividend.
International dividends are determined by:
- Risk experience
- Expense charges
- Local dividends
- Commissions paid to brokers and consultants
- International risk retention
We can arrange for quotations for all your local employee benefit plans. And we will provide you with an international pooling exhibit showing all local poolable business, plus sample scenarios based on the pooling options available. As soon as you have evaluated and confirmed your solution and the local contracts involved, your company simply signs an international pooling agreement.
Please contact us or read the following articles about pooling.
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- The profits of Multinational Pooling
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