Multinational pooling

Multinational pooling,

Definition of Multinational pooling:

  1. As a concept, multinational pooling involves the combination of policies from more than one country into a multinational pooling program. The financial mechanism of such a program involves the use of dividend payments on a multinational level. Such a practice can be employed to bring down the costs of insured employee benefits. Multinational pooling can be a money-making solution for smaller insured pools (such as ones under 100 insured individuals), which are not large enough to be experience-rated (meaning there is not enough historical data to effectively calculate the risk of future claims and therefore perform a meaningful measure of how much a policy should cost). Multinational pooling allows even the smallest of insured groups to join a pool, to efficiently price risk and benefit from whatever savings may occur.

  2. Multinational pooling is a method global companies use to manage the risk of their employee benefit plans throughout the world. The different employee benefit programs of a multinational company are combined to form an international pool. The result of multinational pooling is financial savings and better control of risks.

  3. A type of strategy employed by global companies in managing the risk of their employee benefit plans worldwide. The two types of multinational pooling strategies include company specific and multi-client. These methods benefit companies by helping to achieve economies of scale as well as purchasing power.

How to use Multinational pooling in a sentence?

  1. Companies use multinational pooling to manage employee benefit plans to help save money.
  2. Multinational pooling also helps companies control risks.
  3. Multinational pooling can be used with insurance, accident benefits, and retirement savings plans.

Meaning of Multinational pooling & Multinational pooling Definition