Through multinational pooling, clients have the potential to realise economies of scale and to reduce the cost of their employee benefits provision through multinational dividends. In effect, a global profit share arrangement is created.

The facility allows multinational companies with a favourable claims record to combine their onshore and offshore employee insurance schemes to reduce the cost of insuring their employees internationally. A multinational dividend may be paid to a company, thereby reducing the total cost of insuring employee benefits.

Companies with insured benefits in as few as two countries can participate in a multinational pooling programme.

Multinational Pooling Networks

Employers are given access to a network of international insurance providers who cover the geographical regions required. A multinational pooling network consists of a number of insurance companies located in different countries around the world, and is either independent or owned by an insurer. Independent networks generally have a wider geographical coverage and have the ability to select the leading insurers in each country as their network partners.

Canada Life Group Insurance is a UK member of two of the top three independent pooling networks: Insurope Multinational Benefits Association and The International Group Program (IGP).

How does pooling work?

Multinational pooling is available to multinational organisations who have insured employee benefits in two or more countries. The organisation places their insurance(s) with the multinational pooling network partner in each country, and these insurances are then combined to form a multinational pool.

Importantly, in each country schemes remain insured with local insurers and so benefit from local terms and conditions, administration and claims settlement. Premium rates are set locally by insurers, who compete on a price and service-driven basis in each country. In addition, multinational pooling networks usually have a network partner who specialises in insuring third country national and expatriates, simplifying the process of obtaining such insurances.

There is no additional charge to the organisation or its local subsidiaries for pooling the schemes, and dividend percentages can be substantial.

Resources

Multinational pooling factsheet

Useful Links

To find out more about Insurope or IGP, please use the links below to visit their websites.

www.insurope.com
www.igpinfo.com