1 / 12

International Pooling

International Pooling . Concept & Example. Benefits Direction, Inc. 25 Brunnell Drive, Suite 101 Holden, MA 01520 Tel/Fax: 508-829-6715 Email: bdi@bensdirect.com. International Pooling. Background and Concept Example Corporate and local perspectives Pro’s summarized Provider networks

ksena
Download Presentation

International Pooling

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. International Pooling Concept & Example Benefits Direction, Inc.25 Brunnell Drive, Suite 101Holden, MA 01520Tel/Fax: 508-829-6715Email: bdi@bensdirect.com

  2. International Pooling • Background and Concept • Example • Corporate and local perspectives • Pro’s summarized • Provider networks • Natural pools (the easy way)

  3. Pooling - Background & Concept • Mid-60’s • Buyer: Leveraged/combined purchase power • Seller: low acquisition expense, good retention and lower risk (give some; get some and hold longer) • Cross experience rating (risk coverage’s) • Stop loss and loss carried forward • Common practice at most large multinationals • Emerging multinationals adopting practice

  4. Pooling - Example (one country)

  5. Pooling - Example (1 w/pooling)

  6. Pooling - Example (add 2nd country)

  7. Pooling - Example (add 3rd country)

  8. Pooling - Example Total

  9. Pooling - Example (with negative)

  10. Pooling Networks • Swiss Life, MIA, Insurope, AIG/Winterthur, John Hancock IGP, GAIN, Aetna/Generali etc. • Owned subs or associate insurers • Some local insurers in 1+ • Formal agreements re: size related retentions (risk and profit charges) • Most countries allow international pooling • Small (multi-employer) pool participation available for emerging multinationals - most networks

  11. Natural Pools • Where already utilizing insurers within one pool • Networks stiffening requirements • Easy way to start • Serves as core for additions to the pool usually at renewal time • Can have more than one pool • Included coverage’s needs evaluation - not all risk should be pooled (e.g. STD, AD&D etc.)

  12. Pooling - Summary • Leading local insurance companies • Lowers net benefits costs • Losses can be carried forward or minimized with stop/loss • Improves local provisions e.g. guarantee issue, maximums etc. • Less profit for insurers • Improves operational bottom line • Improved information flow • “Win/Win/Win/Win” situation (Hdqts, local ops, insurers and employees)

More Related