(1) A group of insurers or reinsurers through which particular types of risks
(often of a substandard nature) are underwritten, with premiums, losses, and
expenses shared in agreed ratios. (2) A group of organizations that form a shared
risk pool. Pooling is an attractive alternative for insureds that are not large
enough to legally or feasibly self-insure but that desire more control over their
loss exposures as well as an opportunity to reduce their cost of risk, compared
to a program written by a commercial insurer.
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