International Pooling Programme

How it works

Pooling local policies
The programme involves combining local employee benefit policies from multiple countries (at least 2 countries) into one international pool. Each local policy remains unchanged in terms of administration and terms, but their financial results are aggregated at a global level.

Second stage accounting
Annually, a second stage accounting process is conducted, where the combined claims experience of all pooled policies is reviewed. In other words, this help to reduce the impact of large claims in any one region. This process calculates the overall performance of the pool, including premiums paid, claims, reserves, commissions, taxes, and other expenses.

Rebate calculation
If the overall performance of the pool is positive, a rebate is generated, meaning the companies can potentially achieve some cost savings. This rebate is calculated by netting out claims, changes in reserves, commissions, taxes, local and central expenses, and risk charges from the worldwide premiums paid plus interest credits.

Dividend payments
A portion of the positive result is refunded to the participating company via an international dividend. This dividend provides financial savings and helps companies better manage the costs of their employee benefit plans.

Key benefits Cost savings
By pooling policies, companies can achieve significant cost savings through improved risk management and economies of scale.

Risk management
The programme helps companies control risks by spreading them across a larger pool, reducing the impact of high claims from any single policy in one region.

Administrative efficiency
Consolidating policies into a single pool simplifies administration and provides better oversight and governance of local employee benefits plans.

Enhanced reporting
Companies receive detailed reports that provide comprehensive financial data for all policies included in the pool, aiding in strategic decision-making.

Greater stability
The programme offers greater stability in plan costs over time, making it easier for companies to budget and plan for employee benefits.