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A risk pool is one of the forms of risk management mostly practiced by insurance companies.
The risk of high loss by a particular insurance company is transferred to the group as a whole (the insurance pool) with premiums, losses, and expenses shared in agreed amounts. A risk pool is one of the forms of risk management mostly practiced by insurance companies. Insurers pool similar risk exposures together to compute their own risk of missing the prediction. Risk pools are a risk management tactic usually used by insurance companies as protection against catastrophic events.
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