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MAXIS Solutions for Dedicated Pool

MAXIS proposes its tailored range of Dedicated Pooling solutions to large multinational companies seeking to maximize their insurance and employee benefit schemes across the world. Dedicated Pools are single-company solutions for companies with a minimum of 500 employees in at least two countries. Their portfolio allows them to design a company-specific scheme, with an optimized balance between global and local risk commitments as well as tailored accounting between the head office and subsidiaries, based on annual or multi-year carry-forward profit and loss statements. 

Dedicated Pooling fundamentals

The MAXIS Dedicated Pooling range of solutions has been designed with the needs of large multinational companies in mind. MAXIS begins by assessing a company’s current insurance and benefits packages. Our experts analyze both local and global commitments in such areas as life, accident, disability, medical insurance, pension plans and expatriate benefits.
 

MAXIS then proposes a Dedicated Pool package with the best combination of costs, benefits and quality of service. Its offer includes transparent and optimized accounting practices, thus allowing companies to spread the risk over several years or benefit from annual dividends generated by economies of scale. Once the program is launched, MAXIS monitors and benchmarks performance and proposes changes if required to make sure the company is getting the best return on its insurance investments as it grows and expands.

Dedicated Pooling options

Maxis offers three main families of options for Dedicated Pooling solutions. Each of these can be adjusted to meet the company’s requirements.

→ MAXIS ILCF (Indefinite Loss Carry Forward, with contingency fund)

• Annual profits generated by the Dedicated Pool package are accumulated in a contingency fund 

• As soon as this fund reaches a fixed percentage (25%) of pooled premiums, pooling dividends start being paid out

• Deficits in a year can be immediately recouped from the contingency fund or profits carried forward. 

• Interest is applied to the contingency fund and on retained deficits.

→ MAXIS LCF5Y (Loss Carry Forward five years)

• Loss Carry Forward period over a fixed period of five years or open period

• 50% of any profits in the pool are retained to meet possible future deficits in the current Loss Carry Forward period 

• Remaining 50% are paid out, unless deficits carried over from previous years remain to be recouped

• The contingency fund is built up and is entirely released to the client at the end of each Loss Carry Forward period 

• A deficit in any year within the Loss Carry Forward period is carried forward.

• Interest is applied to the contingency fund.

→ MAXIS ASL (Annual Stop Loss) 

• A profit in the pool in any year is refunded to the client at the end of the year.

• A deficit in any year is absorbed by the Leading and local insurers of the pool. 

Summary chart

In all cases, contracts are calculated on a yearly basis and consolidated in a profit and loss statement, which is balanced out between countries and accounted for centrally. Similarly, dividends can be paid out internationally, on a cash basis, with interests available for carry-forward. International dividends are calculated on a series of criteria according to the solution chosen by the company, reflecting claims levels, administrative costs, local dividends, brokerage and consultancy fees and the level of international risk coverage (including catastrophe coverage).
 

The information provided above indicates basic practices and should be considered as a general overview. For more specific information and an assessment of your pooling requirements. Please contact us.