Nov 27, 2023

The Rise of Multinational Pooling in Global Employee Benefits

Multinational companies face an ever-changing set of challenges and opportunities in an increasingly globalized world. One of the key areas that has seen significant evolution over the last three years is the practice of Multinational Pooling for employee benefits. Multinational Pooling is a mechanism that links employee benefits plans worldwide. This solution has been instrumental in streamlining benefits administration across borders and delivering substantial advantages to both companies and their globally dispersed workforce.

In fact, Insurope—THE Premier Multinational Pooling Network—has seen incredible growth. The Network now serves approximately 1000 multinational clients through its network of market-leading insurers across 83 countries. This momentum is not slowing down! In this article, we explore the market drivers, why multinational companies should be considering this solution, and why Insurope offers the premier solution for companies looking to leverage multinational pooling.

Understanding Multinational Pooling

Multinational pooling is a mechanism that helps multinational companies optimize their employee benefits programs by consolidating their local employee benefits programs from at least two countries into a single multinational pooling program.

This approach offers advanced risk management and governance, centralized reporting, and can offset the cost of employee benefits through multinational pool dividends. In addition, it can offer higher free cover limits for life and disability.

Eligible benefits include life, medical, accident, disability, and retirement with risk across different regions or countries.

The Growth Trajectory of Multinational Pooling for Employee Benefits

While captive arrangements sometimes are in the spotlight, the Multinational Pooling market has also experienced robust growth. The latest industry statistics show that since the COVID pandemic, pooling increased by about 20%, and Insurope grew more with a 30% increase in multinational pools. The interest in pooling is recognition of the many benefits, such as global facilitation and coordination, better terms and conditions, and the potential for receiving an international dividend.

According to Insurope’s market survey, the most important factors for companies when setting up a pool are strong local Network Members, the potential for international dividends, track record, and products and services.

The strong growth is also driven by:

  • Risk Awareness: Due to the pandemic, there is higher risk awareness among people and demand for risk protection, insurance and wellbeing solutions among individuals and companies.

  • Cost Optimization: Global companies are looking to offset cost pressures. In times when inflation and medical costs are skyrocketing, Insurope’s pooling solutions can contribute to reduced costs for multinational companies.

  • Globalization Trends: As businesses expand their operations to tap into new markets and customer bases, the need for consistent and efficient employee benefits programs across borders is critical. Multinational Pooling addresses this need by providing a unified solution.

  • Technological Advancements: The advent of advanced software and data analytics has greatly enhanced the feasibility and effectiveness of Multinational Pooling. Companies can now seamlessly manage benefits programs through collaborative platforms.

  • Regulatory Changes: Demographic trends, pressures weighing on public finance (as a result of the pandemic, war in Ukraine and need to finance the green and digital transition) is resulting in a growing role for private insurance solution in plugging certain protection gaps. Against this background, the access and distribution of employee benefits in the workplace is now critical in most jurisdictions and multinational pooling has proven an effective way for multinational companies to gain access to market leading insurers across the globe.

Benefits for Multinational Companies

Once a company has decided to implement a multinational pool, most are very pleased with the results. According to Insurope’s market survey, almost all companies will continue with the solutions in the future. In fact, Insurope’s survey demonstrates 84% of the multinational companies consider pooling to be very important when selecting a local provider for their subsidiaries. This speaks to the wide range of benefits Multinational Pooling offers companies with international operations. Here are the top reasons why companies choose multinational pooling and stay with it over the long term:

  • International dividends: By netting claims and other expenses from the global premiums, positive pools can create value in the form of international pool dividends with good claims experience.

  • Better Terms and Conditions: With the high free cover limits for Life and Disability facilitated by Insurope (regardless of the number of employees or subsidiaries), Multinational Pooling makes it more convenient for organizations to protect their employees without having to take additional actions. Insurope also finds success by offering some of the highest pooling limits on the market.

  • Access to Worldwide Reporting and Information: Global reporting on their benefits plans allows HR teams to focus on strategic initiatives rather than having to focus on the intricacies of benefits administration in multiple jurisdictions. This enables them to allocate resources more efficiently and effectively.

  • Better Coordination with Local Network Members and Locally Tailored Solutions that Enhance Employee Satisfaction and Retention: Facilitating coordination with local insurers is critical. At the same time, offering competitive and locally tailored benefits packages through local licensed Network Members demonstrates a commitment to employee wellbeing. This can result in higher employee satisfaction, improved morale, and ultimately, higher retention rates.

  • Governance: Navigating the regulatory frameworks of different countries can be a complex and time-consuming process. Multinational Pooling programs allows multinational companies to gain access to a Network of market leading local insurers and therefore to benefit from the expertise of local insurers in each country who understand and can navigate various legal and regulatory requirements.

Future Multinational Pooling Trends

Multinational Pooling is by far the most used and preferred global employee benefits solution for most multinationals. We expect this momentum to continue. Looking ahead, the Multinational Pooling market is positioned for continued growth. Due to the pandemic, there is greater risk awareness and demand for risk protection and insurance among individuals and companies. At the same time, a modest percentage of multinational companies worldwide have implemented a global strategy or use a global solution offered by Multinational Pooling Networks.

And, with the ongoing evolution of technology, including the integration of artificial intelligence and advanced analytics, the capabilities of Multinational Pooling are set to expand even further, providing companies with even more sophisticated tools to manage their global employee benefit plans.


Multinational Pooling represents a powerful solution for companies looking to navigate the complexities of providing employee benefits across international borders. Its growth over the last three years is a testament to its effectiveness in streamlining operations and costs, simplicity of implementation, and ensuring a consistent and competitive offering for employees worldwide. As the global marketplace continues to evolve, Multinational Pooling will likely play an increasingly pivotal role in shaping the future of employee benefits administration for multinational corporations.

Want more? Insurope has just released an insightful educational video breaking down the advantages this mechanism offers to multinational companies and their global workforces. View it here.


By Morten Unneberg, CEO Insurope