insurance pools

Insurance pools are collective arrangements where multiple insurance providers join together to share risks for specific types of coverage. By pooling resources, they spread the financial burden of large claims across members, reducing individual risk exposure. This collaboration helps stabilize premiums and ensures coverage availability for high-cost or rare events. Essentially, insurance pools function as a cooperative safety net, enabling insurers to better manage unpredictable or expensive claims while providing policyholders with more reliable coverage options.