Definition of Multinational pooling:
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.
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.
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?
- Companies use multinational pooling to manage employee benefit plans to help save money.
- Multinational pooling also helps companies control risks.
- Multinational pooling can be used with insurance, accident benefits, and retirement savings plans.
Meaning of Multinational pooling & Multinational pooling Definition