Multinational pooling is a financing mechanism that allows multinational companies to combine insured employee benefit plans in two or more countries within an agreement referred to as a multinational pool. It can reduce the cost of insured employee benefits through the payment of multinational dividends by combining policies in more than one country under a multinational pooling programme.
The types of insurances that may be suitable for ‘pooling’ are most typically group risk arrangements including accident, death, long disability, medical, and critical illness, and pooling has no negative impact on local policy terms and conditions in place through our Network Members. Local plans and their administration remain unchanged, and premiums and claims are paid locally in the same way that they would be if there was not a pool in place. There is no additional administration for local companies and/or their advisers.
A key advantage of multi-national pooling is that it allows profit sharing based on the overall risk experience of the pool which promotes greater economies of scale utilised through a centralised reinsurance and accounting system.
A “pool” is set up through an agreement between the client’s headquarter and In2Matrix, and will never cost more than the sum of all premium collected locally from a client’s subsidiaries. There are no implementation costs to set up a pool and no penalties charged in case of a pool’s cancellation. All local policies are issued and administered in compliance with local laws and regulations
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