Concept of Pooling in Insurance - Risk Management and Insurance, Principles of Insurance Video Lecture | Principles of Insurance - B Com

what exactly is an insurance pool if you
search what is an insurance pool online
the explanation you'll get is that an
insurance pool is a collective pool of
assets from multiple insurance companies
as an underwriter in the property
casualty market you won't be surprised
that pooling is a commonly utilized
tactic for high-risk management such as
floods earthquakes and environmental
coverages however unless you are
familiar with how insurance pools work
specifically for the nuclear industry
you may not completely understand why as
a licensed insurer you can consider
joining the nuclear pooling system in
Canada governments created the
appropriate regulatory policies with
conventions to govern nuclear for the
peaceful purpose of creating energy and
insurers formed pools to meet the needs
set out by these conventions financial
security is the number one tenant of
sound risk management and you have this
when you have a number of reputable
insurance companies coming together to
ensure nuclear reactors the number one
job of an operator following a nuclear
incident is to get their operations
working safely the role of the pool of
insurers is to provide claims
administration that is responsive and
compensates the claimants affected these
two aspects offer community resiliency
and peace of mind the nuclear industry
does everything it can to ensure a loss
never happens but if it does there is a
mechanism in place in Canada to
compensate claimants called the nuclear
liability Compensation Act Nyack is
approved to provide nuclear liability
insurance required by this act known as
the NL CA when primary and reinsurance
companies join the Nuclear Insurance
Association of Canada commonly known as
Nyack we ask them to
omit the amount of money they can afford
to lose we call it the net amount when
there is more than one insurance company
in the pool it helps to spread the risk
Nayak is highly specialized Nayak
provides unique expertise in
underwriting risk control and claims
administration on behalf of members of
the pool Nayak acts as if they are the
nuclear insurance department for each
member
providing individual risk underwriting
policy issuance and governance
engineering services and claims handling
like Nayak there are pools in the UK and
the US and elsewhere at present there
are 26 pools around the world together
we can help make sure there's money to
pay for losses should a loss occur the
type of coverage that are available for
nucular include liability property
course of construction machinery
breakdown and business interruption
Nayak only ensures new killer peril in
Canada we do not reinsure the risk of
other pools we are strictly at domestic
pool Nayak is unique in this as most
polls do reinsure the risk of other
pools Nayak members are made up of
property casualty insurers and
reinsurers that are licensed under Asti
the office of the superintendent of
financial institutions an independent
agency of the federal government of
Canada Nayak Co ensures with NRI nuclear
risk insurers the British pool from the
UK
NRI does reinsure the risk of other
pools together Nayak and NRI can
underwrite the full amount of liability
that will be required by the NL CA that
will increase to 1 billion dollars