 Multi-National
Pooling
Kent International Group LLC caters to
the employee benefit needs of companies
operating within the United States or
around the globe. Use our experience to
develop an integrated program for your
employees worldwide.
International Pooling
Kent International Group, LLC
offers solutions to international
companies to enable them to pool their
insurance and employee benefit plans.
International pooling is the ultimate
leveraging instrument for group
insurance, in that it combines the
buying power of large organizations with
the customized services of local service
providers.
Initially, only the largest
companies could take advantage of
multinational pooling. Customized
international pooling programs are now
available not only for a select few, but
for a wider range of companies,
including small and medium-sized
businesses operating across borders.
International Pooling Fundamentals
International pooling enables companies
to leverage the advantages of group
insurance and employee benefit plans by
spreading risk across a wide number of
business units, either within the
company or across several companies.
Kent International Group, LLC offers
customized services to enable
international companies, whatever their
size, to achieve the best mix of
in-house and external synergies.
Savings
are achieved through extended purchasing
power, lower overhead and reduced
underwriting costs. Furthermore,
international pooling gives companies
greater access to local and global
expertise and improves corporate
governance through better management of
subsidiaries and more transparent
reporting.
Customized Pooling Benefits
Options are carefully tailored to make
sure the company has the coverages and
benefits it needs at the best possible
price and with the appropriate level of
service. Both solutions offer the
following advantages:
Operational benefits
-
The solvability
and financial strength of top rated
companies.
-
A global
partnership network, ensuring the
best balance between global
purchasing power and local service
providers.
-
Single
contract and single contact for the
parent company, to establish a clear
and sustainable strategy.
-
Customized
pooling solutions, taking into
account company size, level of
coverage and benefits required
across the world and locally, with
particular attention paid to
country-specific social security and
tax requirements.
-
Monitoring,
benchmarking and updates on changing
requirements to guarantee
compliance, but also to make sure
that products are designed properly
to give staff true benefits and
thereby strengthen employee loyalty
and facilitate recruitment.
Financial
benefits
-
International
dividends paid to the company’s head
office.
-
Local premiums
are maintained or improved by
pooling.
-
Privileged
underwriting conditions and
processes, lowering administrative
costs.
-
International
reporting on employee benefits,
claims, performance, to ensure cost
and benefit gains.
Example of Pooling Solution
Here is a simplified
example illustrating the advantages
provided by pooling for the overall
results of an international company.
NB: All examples in this document are
simply for the purpose of explaining the
pooling mechanism and do not necessarily
reflect reality, nor can they be
considered as real offers.
Without
Pooling
The local results in this example are positive for Country A and negative for Country B. Each local insurer is liable for their local results.
With
Pooling
If the contracts
from Countries A and B are pooled,
calculated the consolidated results as
follow:
The consolidated
result is positive, at 38,000.
International cost (risk charges and
administrative costs), 17,000 in the
example, is deducted from the
consolidated result. The balance, at
21,000, is the international balance
which is payable to the parent company.
The risk charge is a
percentage of premiums to cover the
average deficit assumed by insurers.
This percentage decreases with the
number of insured.
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