The international insurance pool IGP offers a wide range of innovative solutions in its product line aimed at risk management, cash flow generation, and cost reduction on an international level. Using economically effective and individualized underwriting approaches both locally and internationally, IGP aims to maximize the financial stability of its clients' international accounts. We discussed the main goals and advantages of international pooling in this article.
Combining several of these solutions or using one of the proposed programs from the list will help the company be more effective in developing employee motivation programs, as the needs of both the parent company's employees and its subsidiaries are taken into account. It is important to note that IGP's clients can be both international companies and Ukrainian companies with subsidiaries abroad.
What risks can be insured by the IGP international insurance pool?
The following risks can be insured in the IGP insurance pool:
- Loss of life
- Disability
- Accidents
- Critical illnesses
- Hospitalization, rehabilitation, temporary disability
- Medical insurance
- Pension insurance (currently available for international clients in European countries)
What programs are offered by IGP?
Let's consider the main programs currently available to international clients of the pool.
1. Classic pooling contract (Standalone Pooling Account)
General requirements for companies:
- A minimum of 1,000 employees in different client companies worldwide.
- A minimum of 2 contracts (insurance policies transferred for reinsurance in the pool) in different countries.
This contract provides for the payment of an international dividend and is paid if the life insurance policy is not loss-making, i.e., has a "positive loss ratio" (when payments under the policy do not exceed the amount of the insurance premium paid). The international dividend, in this case, is based solely on the client's own experience of insuring employees in different countries. If the overall net result is positive, it is announced and distributed among all client companies that had a positive result in the form of international dividends. If the net result is negative, it is carried forward with interest to be reimbursed from future positive results, but not for more than 5 years.
2. Small Groups Pool
General requirements for companies:
- Number of employees less than 1000
- No minimum requirement for the number of contracts, employees, or bonuses
- The client must have at least 2 separate departments in different countries
This program allows small and growing transnational companies to take advantage of the benefits of pooling and helps to form one very large and more predictable pool. Each year, the experience of the participants is combined to determine the international dividend (a return of a portion of the premium in case of positive loss experience).
Clients with positive loss experience are paid international dividends equal to their positive results after deducting a proportional share of the deficit incurred by other pool participants (insurance payouts outweigh premiums and insurance expenses).
If the client's overall experience is negative, the deficit is compensated by other participants and not carried forward to the next year.
3. Captive Reinsurance
General requirements:
- Minimum of 2,000 employees in various client companies worldwide.
- Insurance premiums are paid annually in advance.
- Annual insurance premium of over 1 million USD. 100% of insurance risk and premiums in all countries where IGP partners are present are transferred to the Client (parent company). In this case, IGP transfers the premium to the Client, net of local taxes and commissions, within a few days after the subsidiary pays the premium to IGP's network partner. At the end of the year, a final settlement will be made, covering any insurance payments made during the year, as well as any outstanding amounts due to adjustments in premiums resulting from changes in employee lists, local payments, etc.
What pooling program from IGP do you think would be most suitable for your company?
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