Today, we will continue discussing the topic of international insurance pooling and delve into this mechanism in more detail.
"Multinational Pooling" in insurance is a financial mechanism that allows companies with operations in two or more countries to "pool" their employee insurance contracts.
What are the benefits that business owners gain from such a multinational collaboration?
- Control over finances related to medical expenses and life insurance.
- Convenience in administering contracts and receiving reports.
- Cost savings.
- Risk sharing among pool participants.
- Standardization of approaches to life insurance contracts across all company divisions in any country.
- Receipt of international dividends.
Which international Pool does TAS Life cooperate with?
TAS Life is the exclusive representative of the International Group Pool (IGP) in the field of life insurance in Ukraine. In each country, only one insurance company can represent the interests of the pool.
IGP is a division of John Hancock Life Insurance Company (U.S.A.) and was established in 1967 to help multinational companies better manage employee insurance costs.
This international insurance pool is a leader in the field of international employee benefits management and has a large and experienced team of specialists, as well as coordination offices in Boston, Brussels, Singapore, and Waterloo.
Can you provide an example of the advantages of a contract with the insurance Pool?
Let's consider an example of a contract with and without the IGP Pool, both having the same insurance premium of 200,000 hryvnias per year.
In the contract with pooling, which includes equal insurance payouts, taxes, and commissions, the company will also receive an international dividend due to the "positive loss experience" amounting to 20,000 hryvnias in our example. This means that for each client (note: the client is the international company), a certain loss ratio is established as stated in the pooling agreement. It can vary depending on various factors such as the presence of intermediaries, countries, and the number of employees, among others. If at the end of the year the loss ratio does not exceed the predetermined threshold in the contract, the company can claim the payment of an international dividend.
Therefore, a contract through the IGP pool allows returning a portion of the insurance premium to the client in case of a positive loss experience - the payment of an international dividend.
Do you have any questions regarding insurance pooling? Write them in the comments under the article, and we will definitely respond!
