which companies use risk pooling
Answers
Answer:
A risk pool is one of the forms of risk management mostly practiced by insurance companies. Under this system, insurance companies come together to form a pool, which can provide protection to insurance companies against catastrophic risks such as floods or earthquakes.
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Answer:
In insurance, the term "risk pooling" refers to the spreading of financial risks evenly among a large number of contributors to the program. Insurance is the transference of risks from individuals or corporations who cannot bear a possible unplanned financial catastrophe to the capital markets, which can bear them easily – at least in theory. The capital markets, meanwhile, are generally happy to take on risk from individuals and corporations – in exchange for a premium they believe is sufficient to cover the risk.
Tip
Risk pooling in insurance means that there are many contributors to help spread the financial risks from expensive claims more evenly.
Explanation:
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