Multinational pooling

Insurope - Services

Multinational pooling

Multinational pooling: the concept

A financing mechanism that 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.

It allows multinational companies to combine insured employee benefit plans in two or more countries within an agreement referred to as a multinational pool.

Multinational pooling: the principle

The types of insurances that may be included in a pool are accident, death, disability, medical and fully insured retirement savings plans.

Pooling has no negative impact on local policy terms and conditions in place with our Network Members. It is possible though that enhanced free cover may be available under Insurope’s network free cover, improving on the local terms.

Local plans and their administration remain unchanged. 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.

Multinational pooling by Insurope

Insurope’s pooling period is 1st January – 31st December; this does not have any impact on local renewal dates which can remain as already established.

At the end of each year the Insurope Network Members submit the local financial results for each Insurope client, to Insurope’s central office in Brussels.

These are then combined for each client into an Annual Report showing the results for each country after claims and other expenses are deducted from the premiums. A common currency account will also be produced giving an overall result for each specific client.

If the result is a surplus, this will be returned to the client as a Multinational Dividend, subject to the terms and basis of their Pool. Likewise any deficit will be treated depending on the terms and basis of their Pool.

Independent estimates indicate that over the medium to long term 8% to 15% of premiums can be returned through a multinational pool, a respectable saving on the cost of benefits.

Insurope offers a full range of pooling options from full stop loss through to loss carry forward for self experience rated pools and our market leading multi – employer pool, Multipool, for clients with smaller numbers of insured lives.

The choice of pool basis depends on a number of factors including size and composition of the pool in combination with your company’s risk profile.