Spring is a leader in helping multinational firms address their global benefit needs. From helping establish coverage for expats and third party nationals to setting up multinational pooling solutions for large, international employers, Spring is able to help address cross-border benefits and financing needs.
Multinational pooling is the practice of consolidating and combining a large, multinational employer’s global employee benefits portfolio into a centralized solution.
The benefits to a multinational pooling arrangement can include:
- Lower administrative charges than those at the local level
- Spread of risk over a larger group will reduce the risk charge that could otherwise be imposed on a smaller domestic subsidiary
- Insurers in many countries are subject to tariff restrictions, resulting in lower premium rates regulated by law
- When surplus is generated from good experience, companies can benefit from the investment opportunity and a dividend
- Multinational pooling networks provide the insured company with detailed financial reports and other information regarding the pool
- Small plans that participate in a pooling arrangement benefit from the fact that most networks relax (or may even wave) their evidence-of-health requirements
What employee benefits can a multinational pooling program include? Here is a brief rundown:
- Group Life Insurance/Disability Insurance: Depending on the experience of the plan and the characteristics of each country, Group Life Insurance and Disability Insurance can be included in a multinational pooling arrangement
- Health care Insurance: Health care insurance (medical and dental) is generally not included, but can be analyzed on a country-specific basis.
- Pension Insurance: Pension Insurance (deferred annuity/deposit administration, immediate annuity) is only considered under limited circumstances, due to the lack of insurance arrangements involved.
Want more information about how a multinational pooling arrangement may benefit your company? Contact our team for a consultation.