Risk pool

{
  "id": "MLC-T-INS-002978",
  "term": "Risk pool",
  "field": "Insurance and risk management",
  "definition": "A mechanism where multiple entities combine their risks to achieve greater predictability and spread potential losses across a larger group. This aggregation allows for more stable and affordable insurance premiums, as the law of large numbers reduces the impact of individual claims. Risk pools are common in health insurance, workers' compensation, and self-insurance arrangements among municipalities or similar organizations.",
  "url": "https://mlchart.com/terminology/insurance/risk-pool/"
}