Concept of multinational pooling

A financial accounting tool that can help multinational companies manage the risk of their global employee benefit plans. Savings can be achieved by combining the experience of local insured employee benefit plans into an AIG Global Benefits pool.  The pool creates the potential for a partial premium refund through an international dividend. 

The concept of multinational pooling:

  • A multinational pool is an umbrella contract signed by the parent company.  It is not an insurance contract. 
  • Local coverage is provided by the local partner. 
  • Local contracts are treated as one combined contract for purposes of spreading the risk.
  • All pooled contracts are experience rated.
  • A positive pooled experience results in a partial premium refund known as the international dividend.
  • The local insurance contracts included in the pool are not changed in any way.
  • There are no extra charges for the company (parent or local).
  • Pooling can allow for improved underwriting terms and conditions. 
  • Annual reporting is provided to the client at regional and/or headquarter level.
  • Pooling is very often used as a management tool and information base for managers and directors of multinational companies.