What does Reinsurance Pool mean? Read on to discover the definition & meaning of the term Reinsurance Pool - to help you better understand the language used in insurance policies.
A risk financing mechanism used by insurance companies to increase their ability to underwrite specific types of risks. The insurer cedes risk to the pool under a treaty reinsurance agreement. The insurer may be a part owner of the pool and may assume a quota share of the pool risk. A captive reinsurance pool may be owned by the original insureds. Some pools are operated by states to provide capacity for hard-to-place risks.
We hope the you have a better understanding of the meaning of Reinsurance Pool.