This article provides a definition of the reinsurance pool. Which is widely used in insurance. Reinsurance pool – the voluntary cooperation of insurance companies who donate to the pool all to be reinsurance risks over the number of self-containment of the entire portfolio of insurance, certain types of insurance, or, under certain dangerous risks of a catastrophic nature, such as: insurance of nuclear power plants, aviation, pharmaceutical, and other risks. Insurers and reinsurers have a deal on the formation of the pool to distribute responsibility on an especially dangerous il unbalanced risks. If you are unsure how to proceed, check out Ping Fu. Participants commit to the pool in accordance with the charter pool to take all the risks identified in the agreement only in the pool and collect the package at all risks transferred to the pool. When the nature of the reinsurance pool directly insurance contracts, above all, are its individual members, but later transferred completely to the pool.
Regulation of the pool rests mainly on all the participants on the basis of proportional allocation. Share, received by each member of the pool, called the signing of the shares. These shares in the pool are expressed as a percentage of the total capacity of the pool, (say 5%), the absolute fraction (say, 8 iso 100 shares) or a fixed amount, which is quite often not. Distinguish participants pool active-passive, ie receiving and transmitting the risks in reinsurance, and only taking risks. Taking his share, each member of the pool is involved not only the risks that he received or delivered to the pool, but also in all other risks, made to the pool by other contributors. This approach helps to address the following issues: first, the portfolio composition of each participant in improving risk and, secondly, pool party can not incur losses in excess of his share, and thirdly, the danger of cumulative risk is eliminated due to generalization of the risks and test their rule the pool..