Pooling general explanation
Companies operating in more than one country encounter a broad range of obstacles. Among them are the tracking and payment of benefits across multiple locations and how to best work with insurers abroad who operate under different laws and financial systems. Multinational pooling helps employers reduce risk and control costs while optimizing the delivery of benefits to an international workforce.
The advantages of setting up a multi-national pooling arrangement is the following:
- The entire local national insurance group is eligible for experience rating.
- Countries with small numbers of local nationals can still participate.
- Possible dividend check back to the parent company after final year end accounting.
- More control by the parent company vs. each country doing their own thing. Coordination through the multinational pooling company
- Cost savings and efficiencies
- Single point of contact for many issues
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