GLOBAL - Multi-national companies are forfeiting up to 15% of the risk premium by not coordinating the various employee benefits plans of their overseas subsidiaries, according to Dirk Hellmuth, head of Allianz International Employee Benefits Network (All Net).
“Up until a few years ago, many multi-nationals gave their subsidiaries a lot of leeway when it came to occupational employee benefits. But now they want to know about costs and risks,” said Hellmuth, whose team is establishing occupational risk management solutions as well as risk-pooling structures for multi-national companies.
All Net has found that a risk-pooling structure, in which various insurance contracts from different countries can be pooled to make use of economies of scale when re-insuring them, can save a company up to 15% of the risk premium.
Hellmuth estimates approximately 80% of multi-nationals are now aware of the risks foreign employee benefit plans can be posing.
But he added it was also important to inform companies whether or not offering an occupational employee benefit plan would help its competitiveness in a certain markets.
UK insurer Legal & General has now joined the All Net network as the representative insurer for employee benefit products in the UK market.
“As the UK is one country where Allianz does not have a life insurance subsidiary, we are delighted we could team up with Legal and General for local market expertise,” said Hellmuth.
“Legal & General joined as part of their growth strategy into international business, to support their local clients with operating subsidiaries abroad with international insurance programmes,” he added.
If you have any comments you would like to add to this or any other story, contact Julie Henderson on + 44 (0)20 7261 4602 or email julie.henderson@ipe.com
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