Actuarial Science Concepts

1 words in this vocabulary list

noun a financial arrangement where insurance companies combine their resources to cover a large number of policyholders

  • The insurance company uses a risk pool to spread the financial risk of covering high-cost individuals.
  • The risk pool helps insurance companies cover the costs of people with expensive medical needs.
  • The risk pool is like a safety net for insurance companies to handle expensive claims.
  • Think of a risk pool as a way for insurance companies to share the burden of covering costly medical treatments.