Multinational pooling allows multinational companies to benefit from gathering the employee benefit plans across borders in what is called a multinational pooling account.
The pooling account is comparable to a joint purchase agreement and, through a combination of local subsidiary agreements, gives a number of economies of scale.
- Reduced risk costs
- Improved underwriting terms because of larger spread of the risk
- Overview of the company’s insurance programme through annual reports on the subsidiaries' contracts with descriptions of current social security benefits and rates
Compliance with local legislation
A local insurance company ensures that the subsidiary’s local group benefit plan is established in compliance with the local legislation and is adjusted to the local social security system.
Danica Pension's international networks
Danica Pension represents two pooling networks in Denmark: Insurope and Swiss Life Network. Both are among the top three worldwide and are leading partners/providers to multinational companies.