Insurance Pool
/ɪnˈʃʊərəns puːl/
Definitions
- (n.) A collective arrangement where multiple insurers share the risk of covering large or high-risk exposures.
The insurance pool enabled small companies to access coverage for natural disasters by sharing the risk with others.
Forms
- insurance pool
- insurance pools
Related terms
See also
Commentary
Insurance pools are often used to diversify risk and increase underwriting capacity, especially for risks that are difficult to insure individually.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.