AIG Global Benefits Network

Multinational pooling

Multinational pooling

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 Network multinational pool.  The pool creates the potential for a partial premium refund through an international dividend.

  • 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.

Which employee benefits?

The risk part of pension plans can be pooled

Under pension we include covers that provide income after retirement. In some countries disability covers and survivors covers are included in the pension plan. The insured risk part of these pension plans is poolable.

Group life plans, lump sum or annuities

Group Life insurance provides a lump sum or annuity benefit to survivors upon the death of the insured. Often there are riders attached to this cover like Accidental or Disability covers. These might be included under Life

Short or long term disability

Under Disability we understand all insurance coverages, providing covers in case of a temporary or permanent incapacity to work. This incapacity might be due to illness or accident. This could either be a lump sum or a disability pension. In some countries, this will be called Group Income Protection.

In- or outpatient benefits

Group Medical Insurance provides compensation in case the employee or his family members (when included) incur medical expenses. Both inpatient and outpatient coverage might be pooled. 

Which multinationals?

Stand-alone Pool (+300 employees)

An Independent pool contains only your company's Employee Benefit contracts that are held by our network partners.  This allows your company experience to drive any surplus in the pool.  In order to operate a Stand-Alone pool, we require coverages from at least 2 separate countries and a combined total lives of 300 or more.  We offer several Self-Experienced pooling systems to manage the risk of negative pool balances.

Multinational Aggregate Pooling System (+50 employees)

Our Aggregate pool is made up of several company pools that are not large enough to be Self-Experienced.  These smaller pools are grouped together for stability.  This allows your company to participate in the possibility of surpluses when limited coverages are placed with our network partners.  In order to participate, we require coverages from at least 2 separate countries and a combined total lives of 50 or more.