Multipool
Insurope offers its Multinational System, MULTIPOOL for groups under 200 units (i.e. 200 lives if risk only is involved, or 100 lives if risk and pension are covered). Although 200 units is the threshold for a client to have it's own pool, Insurope does allow clients who wish so the possibility to continue participation in Multipool up to an upper limit of 1,000 lives (unless premium is less than € 300,000). The minimum requirement to participate in this multi-employer pool is coverages in two or more countries.
There is no minimum number of units required. Dividends under Multipool are paid annually in proportion to each participant's surplus. Any losses are written off and not carried forward. Free cover limits for death benefits are the local currency equivalents of € 700,000. Free cover amounts for disability pension are € 45,000 per annum.
As Multipool is only operated on the stop loss system, an amount equal to the proportion of the stop loss charge relating to the total small groups pool is deducted from each account.
The excess of single claims above the following rating limits are absorbed by Insurope : lump sum on death € 700,000, and disability pension € 45,000 per year.
Local rates of interest are credited on monies paid and held in respect of retirement benefits. There is no interest payable on cash-flow arising from risk benefits, nor is there interest credited to multinational dividends, hence providing an incentive for clients to aspire to the establishment of an own pool.
MULTIPOOL Results
If experience for a year is such that there is an overall surplus in Multipool, dividends will be paid to those companies who have at least one plan included in Multipool which has produced a surplus.
Each individual surplus result is reduced proportionately to cover losses which have arisen in other plans. The balance of the positive results for a company's subsidiaries is payable to the company as a multinational dividend.
Multinational dividend payment rates since Multipool's inception, expressed as a percentage of positive results, have been :-
| 2008 42% |  |
2001 27% | |
1994 46% | |
1987 54% |
| 2007 37% | 2000 57% | 1993 0% | 1986 71% | |||
| 2006 30% | 1999 30% | 1992 33% | 1985 68% | |||
| 2005 40% | 1998 32% | 1991 34% | 1984 0% | |||
| 2004 38% | 1997 57% | 1990 69% | ||||
| 2003 34% | 1996 36% | 1989 73% | ||||
| 2002 35% | 1995 27% | 1988 73% |
The average payout rate for Multipool over the last five years is 37%.
By way of example, dividends payable from Multipool over the four years 1997-2000 averaged 17% of risk premiums.
