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MAXIS International Pooling

MAXIS offers solutions to international companies to enable them to pool their insurance and employee benefit schemes. International pooling is the ultimate leveraging instrument for group insurance, in that it combines the buying power of large organizations with the customized services of local service providers. Initially, only the largest companies could take advantage of multinational pooling. MAXIS customized international pooling programs are now available not only for a select few, but for a wider range of companies, including small and medium-sized businesses operating across borders.

International pooling fundamentals

International pooling enables companies to leverage the advantages of group insurance and employee benefit schemes by spreading risk across a wide number of business units, either within the company or across several companies. MAXIS offers customized services to enable international companies, whatever their size, to achieve the best mix of in-house and external synergies.
 

Savings are achieved through extended purchasing power, lower overhead and reduced underwriting costs. Furthermore, international pooling gives companies greater access to local and global expertise and improves corporate governance through better management of subsidiaries and more transparent reporting.

Customized pooling benefits

MAXIS offers two main options for pooling solutions: Dedicated pool or Multipool. Each of these options are carefully tailored to make sure the company has the coverages and benefits it needs at the best possible price and with the appropriate level of service. Both solutions offer the following advantages:

→ Operational benefits  

• The solvability and financial strength of AXA and MetLife

• A global partnership network, ensuring the best balance between global purchasing power and local service providers

• Single contract and single contact for the parent company, to establish a clear and sustainable strategy 

• Customized pooling solutions, taking into account company size, level of coverage and benefits required across the world and locally, with particular attention paid to country-specific social security and tax requirements

• Monitoring, benchmarking and updates on changing requirements to guarantee compliance, but also to make sure that products are designed properly to give staff true benefits and thereby strengthen employee loyalty and facilitate recruitment

→ Financial benefits  

• International dividends paid to the company’s head office

• Local premiums are maintained or improved by pooling

• Privileged underwriting conditions and processes, lowering administrative costs

• International reporting on employee benefits, claims, performance, to ensure cost and benefit gains

Example of a MAXIS pooling solution

Here is a simplified example illustrating the advantages provided by pooling for the overall results of an international company.
 
NB: All examples in this document are simply for the purpose of explaining the pooling mechanism and do not necessarily reflect reality, nor can they be considered as real offers.
 
 

→ Without pooling 

The local results in this example are positive for Country A and negative for Country B. Each local insurer is liable for their local results.
 
 
 

→ With pooling

If the contracts from Countries A and B are pooled, MAXIS calculates the consolidated result as follows:

      
The consolidated result is positive, at 38,000. International cost (risk charges and administrative costs), 17,000 in the example, is deducted from the consolidated result. The balance, at 21,000, is the international balance which is payable to the parent company.
 
The risk charge is a percentage of premiums to cover the average deficit assumed by insurers. This percentage decreases with the number of insured.