Multinational Risk Pooling Makes Sense
To optimally benefit from a multinational risk pool, generally an employer must include
Local country employee benefit programs which are insured and capable of recognizing favorable experience at the consolidated level.
A country mix having no one country insured employee population so dominant in size as to remove the benefit of risk pooling.
A sufficient number of local country insured benefit plans and sufficient total number of employees to make multinational risk pooling advantageous.
a Multinational Risk Pooling Partner
The multinational risk pool will be administered by a global risk pool administrator, who will be able to pool coverages offered by its affiliate insurers in the various countries. Selecting a pool necessitates purchasing employee benefit insurances through the affiliate insurers. In addition not all risk pool administrators will include all coverages eligible to be pooled and will not perform pool accounting in the same way. Consider carefully
Is the multinational risk pool established and stable?
Are the risk pool affiliate insurers the most prominent in the countries of interest?
What are the minimum employee populations that the risk pool will include?
What coverages will the risk pool administrator include in the risk pool?
does the international risk pool administrator treat financial losses from
poor experience in the risk pool?