Pooling systemsPooling systems

There are two pooling systems available

  • Stop-loss
    Each year any negative balance in the multinational profit & loss account is absorbed by the participating insurance companies.
  • Loss carryforward
    Any negative balance in the multinational profit & loss account is transferred to the next year’s account.


Reinsurance premium
To prevent a deficit, the client pays a reinsurance premium. The reinsurance premium is higher on the Stop Loss system than on the Loss Carry Forward system, as the Loss Carry Forward system allows the insurer the option to ”catch up” on a possible deficit from previous years. The higher the volume, the lower the reinsurance premium.

Risk premium
A surplus is created if the risk premium exceeds the claims. The balance of the positive results for a company's subsidiaries is payable to the parent company as a multinational dividend. The parent company determines the distribution of the local dividend.

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There are no costs associated with a pooling agreement.

The only involvement from the company is to provide assistance to the local subsidiaries/co-ordination. The pooling networks have created a template, that makes it easier to get started and saves the company time.

If the parent company wishes to play an active part in the process of optimising the outcome of the pooling arrangement, the effort may be rewarded by the possible surplus splitting between the parent company and its subsidiaries.

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Pensions and insurance
Your pension scheme is not only about pension savings, but also insurance for you and your family.

Pensions and insurance
What if...
What is important to remember if you are getting married or become unable to work?

What if