risk pooling что это
risk pool
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Risk pool — A risk pool is one of the forms of risk management mostly practised by insurance companies. Under this system, insurance companies come together to form a pool, which can provide protection to insurance companies against catastrophe risks such as … Wikipedia
The Risk Pool — Infobox Book | name = The Risk Pool image caption = Front cover of the 1st edition author = Richard Russo country = United States language = English genre = Novel, Bildungsroman publisher = Random House (hardcover) Vintage (paperback) release… … Wikipedia
Intergovernmental risk pool — A risk pool is a method used by insurance companies to reduce their exposure to sudden and severe losses caused by large scale catastrophic events.To use a simplified example: an insurance company with many policies in hurricane prone Florida… … Wikipedia
Risk Godstorm — is a Risk variant board game published by Avalon Hill and designed by Mike Selinker with developers Richard Baker and Michael Donais. The cultures of the Celts, Norse, Greeks, Egyptians, and Babylonians clash for supremacy of the ancient world.… … Wikipedia
pool — See commodity pool. The CENTER ONLINE Futures Glossary (1) For mortgage backed securities, a pool is a group of mortgage loans backing an individual security issue. (2) In funds transfer pricing systems, a pool is an aggregation of funds to… … Financial and business terms
Pool chlorine hypothesis — The pool chlorine hypothesis is the hypothesis that long term attendance at indoor chlorinated swimming pools by children up to the age of about 6 7 years is a major factor in the rise of asthma in rich countries since the late twentieth century … Wikipedia
Pool noodle — A pool noodle (also known as a water log) is a cylindrical piece of polyethylene foam sometimes hollow. Pool noodles may used by people of all ages while swimming. They are useful when learning to swim, for floating, for rescue reaching, in… … Wikipedia
Equalization pool — Articleissues context = January 2008 copyedit = January 2008 wikify = January 2008An equalization pool is a term used in many different industries or national settings to describe a fund from which to level out differences in collective… … Wikipedia
Credit risk — Categories of financial risk Credit risk Concentration risk Market risk Interest rate risk Currency risk Equity risk Commodity risk Liquidity risk Refinancing risk … Wikipedia
Operational risk — Categories of financial risk Credit risk Concentration risk Market risk Interest rate risk Currency risk Equity risk Commodity risk Liquidity risk Refinancing risk … Wikipedia
Market risk — Categories of financial risk Credit risk Concentration risk Market risk Interest rate risk Currency risk Equity risk Commodity risk Liquidity risk Refinancing risk … Wikipedia
risk pooling
Смотреть что такое «risk pooling» в других словарях:
Risk pool — A risk pool is one of the forms of risk management mostly practised by insurance companies. Under this system, insurance companies come together to form a pool, which can provide protection to insurance companies against catastrophe risks such as … Wikipedia
Risk financing — In business economics, risk financing is concerned with providing funds to cover the financial effect of unexpected losses experienced by a firm. Traditional forms of finance include, funded retention by way of reserves (often called self… … Wikipedia
Pooling (resource management) — Pooling is a resource management term that refers to the grouping together of resources (assets, equipment, effort, etc.) for the purposes of maximizing advantage and/or minimizing risk to the users. The term is used in many disciplines. Finance… … Wikipedia
risk — risker, n. riskless, adj. /risk/, n. 1. exposure to the chance of injury or loss; a hazard or dangerous chance: It s not worth the risk. 2. Insurance. a. the hazard or chance of loss. b. the degree of probability of such loss. c. the amount that… … Universalium
Multinational Pooling — A method global companies use to manage the risk of their employee benefit plans throughout the world. The different employee benefit programs of a mulinational company are combined to form an international pool. The result of multinational… … Investment dictionary
Microinsurance — is a term increasingly used to refer to insurance characterized by low premium and low caps or low coverage limits, sold as part of atypical risk pooling and marketing arrangements, and designed to service low income people and businesses not… … Wikipedia
Cardiac arrest — For other uses, see Cardiac arrest (disambiguation). Cardiac Arrest Classification and external resources … Wikipedia
medical insurance — Health care in China has been largely segmented between urban and rural populations. Among the urban population, for over four decades since the early 1950s, there were two major programmes: the Labour Insurance Programme (LIP) and the Government … Encyclopedia of Contemporary Chinese Culture
РИСКОВЫЙ/ВЕНЧУРНЫЙ КАПИТАЛ — (risk capital) Капитал, инвестированный в акции или новые проекты с большой вероятностью риска. Владельцы венчурного капитала сознательно идут на риск, если рассчитывают получить достаточно большую среднюю прибыль, несмотря на некоторые убытки.… … Экономический словарь
Pensions in Chile — The Chile Pension system (Spanish: Sistema Previsional) refers to old age, disability and survivor pensions for workers in Chile. The pension system was changed by José Piñera, during Augusto Pinochets military government on November 4, 1980 from … Wikipedia
Forward error correction — In telecommunication, information theory, and coding theory, forward error correction (FEC) or channel coding[1] is a technique used for controlling errors in data transmission over unreliable or noisy communication channels. The central idea is… … Wikipedia
What Is Risk Pooling in Insurance?
What Are the Benefits of National Health Insurance?
For any type of insurance coverage, some people and businesses are more likely to file a claim at some point during the policy’s term. Whether the policy covers health care, professional malpractice or loss of any other type, there will be some insured people who are at a greater risk of needing that coverage. One definition of risk pooling could be «a group formed by insurance companies to provide catastrophic coverage by sharing costs and potential exposure.» Risk pools help insurance companies offer coverage to both high- and low-risk customers. They also lessen the risk borne by any single insurance company by spreading it among many.
TL;DR (Too Long; Didn’t Read)
Insurance risk pools are a risk management mechanism by which insurance companies can offer insurance products to more high-risk individuals and businesses for certain catastrophic losses by sharing costs and potential exposure more evenly across the board.
Benefits of Risk Pooling in Insurance
Individuals and businesses generally purchase insurance policies to protect themselves against unusual but potentially costly damages and losses. The losses may be more or less unlikely from a statistical perspective, but if the unfortunate event does occur, it could have the potential to be financially catastrophic for the business or person in question. Some types of insurance are required. For example, state governments require all drivers to maintain adequate car insurance.
By creating risk pools, insurance companies help spread the risk and avoid the type of massive payout required after a catastrophic loss. It is a form of risk management for insurance companies. If a claim is made for reimbursement due to that catastrophic loss, the participating insurance companies spread the loss among themselves. This helps protect smaller claimants from being left uncovered due to their insurance company’s bankruptcy or closure.
Risk Pooling and Insurance Premiums
The larger the risk pool, the more consistent and stable the premiums should be. However, this doesn’t always translate to the lowest premiums. For example, a large health insurance risk pool should carry stable premiums (that is, the premiums shouldn’t change significantly or quickly), but those premiums wouldn’t necessarily be the lowest available or even on the low side of a range of costs. Lower premiums are instead associated with the least amount of health care costs on average per pool member (i.e., insured person).
This is because on average, high-risk insured people cost their insurance companies more money over the life of a policy, statistically speaking. For example, a person with cancer who is undergoing long-term treatment for the illness will incur far greater medical costs than a healthy individual would for the same period of time. Older people will generally pay more for life insurance than young adults, and new drivers in their teens will pay more for automobile insurance than seasoned, careful drivers with excellent driving records. As you’d expect, lower-risk people receive insurance premiums that are generally much less expensive. By combining high- and low-risk insureds in a single pool, the potential costs presented to the insurers become more manageable and stable.
Actuaries provide detailed analyses of the likelihood of a particular kind of loss and the severity of the resulting damage. Actuaries are professionals who are highly skilled in finance and statistics. Insurance companies take the actuarial analyses and come up with rates that are acceptable and (hopefully) reasonable. Actuaries are have crunched the numbers to back up the general assertions on which policies are issued and premiums are based.
In the case of risk pools, premiums are calculated to strike a balance between the extra anticipated costs of high-risk individuals or businesses and the likelihood of their need for the policy.
Risk Pooling and Health Insurance
Many types of insurance work with a risk pool. Health insurance is probably the most familiar context. Most recently, proposed federal legislation in the U.S. would have created high risk pools as an alternative to the provisions of the Affordable Care Act, which barred insurance companies from refusing to cover pre-existing conditions.
Prior to the ACA, health insurance policies traditionally excluded coverage for pre-existing conditions, sometimes for a specific waiting period. The ACA required insurance companies to do away with these exclusions, thus guaranteeing coverage for people with pre-existing conditions. However, premiums may still reflect an assessment of higher than usual risk.
Essentially, the ACA established a risk pool in each state, which is used by companies when they set premium schedules. Basically, the companies pool together all insurance plans that comply with the ACA requirements, which then spreads out the costs of insuring higher-risk individuals, such as the chronically ill, the elderly and others who incur greater health costs.
Government or Public Entity Risk Pools
A special form of insurance risk pool is the governmental or public entity risk pool. These risk pools basically work in the same way as insurance company pools. The difference is that instead of being created and operated among insurance companies, these pools are made up of public organizations or governmental units. As an example, a state’s city governments could join together to create a risk pool for worker’s compensation insurance. Other examples of governmental bodies or public organizations that might create risk pools are county governments, state agencies and school districts. The intergovernmental risk pool provides an alternative for the member governments or bodies to self-fund their own insurance coverage, sharing losses and agreeing on premium calculations. Governmental units sometimes prefer this approach over traditional insurance coverage due to their ability to control costs and payouts.
health insurance risk pool
Смотреть что такое «health insurance risk pool» в других словарях:
Health insurance — is insurance against the risk of incurring medical expenses among individuals. By estimating the overall risk of health care expenses among a targeted group, an insurer can develop a routine finance structure, such as a monthly premium or payroll … Wikipedia
Health insurance in the United States — The term health insurance is commonly used in the United States to describe any program that helps pay for medical expenses, whether through privately purchased insurance, social insurance or a non insurance social welfare program funded by the… … Wikipedia
Health insurance mandate — A health insurance mandate is either an employer or individual mandate to obtain private health insurance, instead of (or in addition to) a National Health Service or National Health Insurance.[1] Contents 1 United States 1.1 US States … Wikipedia
Risk pool — A risk pool is one of the forms of risk management mostly practised by insurance companies. Under this system, insurance companies come together to form a pool, which can provide protection to insurance companies against catastrophe risks such as … Wikipedia
National health insurance — (sometimes called statutory health insurance) is health insurance that insures a national population for the costs of health care and usually is instituted as a program of healthcare reform. It is enforced by law. It may be administered by the… … Wikipedia
Health care provider — A health care provider is an individual or an institution that provides preventive, curative, promotional or rehabilitative health care services in a systematic way to individuals, families or communities. An individual health care provider (also … Wikipedia
Insurance — This article is about risk management. For Insurance (blackjack), see Blackjack. For Insurance run (baseball), see Insurance run. In law and economics, insurance is a form of risk management primarily used to hedge against the risk of a… … Wikipedia
insurance — /in shoor euhns, sherr /, n. 1. the act, system, or business of insuring property, life, one s person, etc., against loss or harm arising in specified contingencies, as fire, accident, death, disablement, or the like, in consideration of a… … Universalium
insurance — A contract whereby, for a stipulated consideration, one party undertakes to compensate the other for loss on a specified subject by specified perils. The party agreeing to make the compensation is usually called the insurer or underwriter; the… … Black’s law dictionary
insurance — A contract whereby, for a stipulated consideration, one party undertakes to compensate the other for loss on a specified subject by specified perils. The party agreeing to make the compensation is usually called the insurer or underwriter; the… … Black’s law dictionary
What Is Risk Pooling in Insurance?
Risk pooling provides a safety net that helps entrepreneurs undertake worthy enterprises.
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In insurance, the term «risk pooling» refers to the spreading of financial risks evenly among a large number of contributors to the program. Insurance is the transference of risks from individuals or corporations who cannot bear a possible unplanned financial catastrophe to the capital markets, which can bear them easily – at least in theory. The capital markets, meanwhile, are generally happy to take on risk from individuals and corporations – in exchange for a premium they believe is sufficient to cover the risk.
Risk pooling in insurance means that there are many contributors to help spread the financial risks from expensive claims more evenly.
History of Risk Pooling
Risk pooling is essential to the concept of insurance. The earliest known insurance policies were written some 5,000 years ago, to protect shippers against the loss of their cargo and crews at sea. Any one of them would be devastated by the loss of a ship. But by pooling their resources, these ancient businessmen were able to spread the risks more evenly among their numbers, so each paid a relatively small amount. Under the Babylonians, those receiving a loan to fund a shipment would pay an additional amount in exchange for a rider cancelling the loan if a shipment should be lost at sea.
Modern Insurance Policies
The insurance industry grew enormously, as individuals and businesses sought to protect themselves from economic catastrophe by transferring their risks to an insurance pool. We still have commercial shipping insurance – just as we did in the ancient world – and we also insure against such diverse risks as fires, floods, theft, auto accidents, kidnap and ransom schemes, defaults on the part of our debtors, lawsuits and judgments, dying too early and even against the risk of living too long.
Risk and Premium
A class of professional experts in finance and probability, called actuaries, work for insurance companies to attempt to predict the probability and severity of risk. They also take lapse rates and interest rates or other expected rates of return on investment assets into account, with the goal of setting acceptable premiums.
The premium is the cost of pooling one’s own risk with that of others via an insurance company and includes the insured’s share of expected claims costs, administrative expenses, sales and marketing expenses, and a profit for the insurer. If a premium payer is affected by a covered risk, the insurance company, and not the insured, takes the hit. If claims are higher than expected, however, the insurance company may have to raise rates on policy holders across the board.
Insurable vs. Uninsurable Risks
Not every negative economic event is insurable. For risk pooling to be effective, the risk should be unforeseen and infrequent. If a negative event can be predicted in a certain case, it’s not a risk, but certainty – and certainties are not insurable (with the possible exception of death, which is insurable because its timing is uncertain).
Furthermore, if a risk is too frequent, it cannot meaningfully be transferred to an insurance company, since the insurance company would only pass on the cost of the negative occurrence to the pool of insureds, along with their expenses and profits. If nearly everyone in a risk pool is filing a claim, then they are likely better off not attempting to pool their risks at all but setting aside sufficient reserves to pay for them themselves.