Word forms: (present) pools a risk, (past) pooled a risk, (perfect) pooled a risk, (progressive) pooling a risk
( Insurance : Reinsurance )
risk, risk pooling
Pooling risk is an important way insurers reduce the costs of bearing risk.
The savings provided by pooling risks allow insurance companies, even with overhead and expenses, to provide certain products
and services more efficiently than one can duplicate on its own.
If an insurer pools a risk, it takes on a share of each risk underwritten by every other member in an association
of insurers or reinsurers.
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