Gains from international experience rating
Once the international agreement is in place, an insurer measures the overall claims experience of each poolable local employee benefit contract included in your pool by balancing income against expenditure.
We they consolidate the data from all the pooled contracts and countries in your pool to produce an overall profit&loss account. By balancing any losses in one country against gains in another, they can calculate the overall experience of your company-specific pool. This is called international experience rating.
If there is an overall positive balance, an insurer will credit it to your company as an international dividend according to your instructions. On the other hand, if there is an overall negative balance, insurers will most of the time not ask you to compensate for this (unless you have opted to self-retain pooled risks). There is simply no international dividend paid for that year.
Call our pooling expert: mr Gerrit-Jan Doorneweerd +31(0)20 6200825 Amsterdam, The Netherlands