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Multinational Pooling
As the exclusive Canadian partner of the
Zurich Employee Benefit Network ("ZEBN"), the Industrial
Alliance Group of Companies (consisting of Industrial Alliance, National
Life and Industrial Alliance Pacific) is able to bring the benefits
of multinational pooling to multinational employers.
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What is Multinational Pooling?
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Multinational pooling is a system under which
the benefit plans of local subsidiaries and/or divisions in various countries
are brought into a single unit or "pool" for the purpose of
reducing their risk charges. This is accomplished through the process
of experience rating the pool, under which the local benefit plans are
assessed as a single group for underwriting purposes.
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What are the Benefits of Multinational Pooling?
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1.
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Cost Savings
Multinational employers can achieve a
reduction in the overall cost of their local benefit plans without
reducing the benefit levels. By combining the local benefit plans
into one pool, a multinational employer can take advantage of combining
the global experience of its local plans for experience rating purposes.
This allows for a reduction in the multinational employer's risk
charges as the employer is able to spread the risk of adverse experience
over a larger group.
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2.
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International Dividend
Multinational employers are able to take
advantage of favorable claims experience on a global level. The
surplus generated by the pool will flow to the multinational employer.
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3.
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Greater Control over Benefit Plans
Multinational employers will receive enhanced
reporting regarding the overall costs and performance of their global
plans, thus allowing for more effective management of the plans.
In addition, by receiving detailed financial
reports on a regular basis regarding the operation of the pool,
a multinational employer will be able to identify any problem areas,
such as cost escalation or claims incidence in a local benefit plan,
which will allow for steps to be taken to remedy the situation.
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What Benefits may be Included in a Multinational
Pool?
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Most employer sponsored insurance benefits (including
retirement benefits) can be included in a multinational pool. However
the most common benefits that are included in a multinational pool are
Life and Long-Term Disability Insurance.
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What are the Minimum Requirements for a Multinational
Pool to be Implemented?
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Most employer sponsored insurance benefits (including
retirement benefits) can be included in a multinational pool. However
the most common benefits that are included in a multinational pool are
Life and Long-Term Disability Insurance.
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Local benefit plans in at least 2 countries
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At least 300 employees insured under the
local benefit plans
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Life Insurance and/or Long-Term Disability
Insurance must be included under the pool
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At least $300,000 annualized premium in
total for the benefits in the pool
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What is ZEBN?
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Based in Zurich, Switzerland, the ZEBN is an
international network of leading insurers working together to bring benefit
solutions to multinational employers on a global basis.
Managed by the Zurich Financial Services Group,
a leading provider of financial protection and wealth accumulation solutions
for companies and individuals, ZEBN has partners in over 40 countries,
a number which will grow as ZEBN continues to search out insurers with
the strength and expertise to assist multinational employers with their
global needs.
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For Further Information |
To learn more about multinational pooling and
its benefits for employers, please contact your group insurance representative.
In addition, if you wish to learn more about
ZEBN and its worldwide partners, you can visit Zurich
Continental Europe Corporate.
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