risk pool
≈ 2 min read
Names in other languages
- DeutschVersicherungspool
- Bahasa Indonesiakumpulan resiko
- azSığorta daxılı
- Русскийстраховой пул
- Українськастраховий пул
- ItalianoRisk pooling
- Englishrisk pool
- Nederlandspool
Article bodies are English and are not machine-translated. A name in another language is not a translation of the article.
A risk pool is a form of risk management that is mostly practiced by insurance companies, which come together to form a pool to provide protection to insurance companies against catastrophic risks such as floods or earthquakes. The term is also used to describe the pooling of similar risks within the concept of insurance. It is basically like multiple insurance companies coming together to form one. While risk pooling is necessary for insurance to work, not all risks can be effectively pooled in a voluntary insurance bracket unless there is a subsidy available to encourage participation.
A risk pool is a form of risk management that is mostly practiced by insurance companies, which come together to form a pool to provide protection to insurance companies against catastrophic risks such as floods or earthquakes. The term is also used to describe the pooling of similar risks within the concept of insurance. It is basically like multiple insurance companies coming together to form one. While risk pooling is necessary for insurance to work, not all risks can be effectively pooled in a voluntary insurance bracket unless there is a subsidy available to encourage participation.
References
Text derived from https://en.wikipedia.org/w/index.php?oldid=1339149331 under CC BY-SA 4.0; modifications have been made.