SSAP 63: Underwriting Pools

Question 1

What are the 3 categories of pools? Describe these pools

Answer 1

• Involuntary: insurers share underwriting results
  (including premiums, losses & expenses) of
  insureds that can not obtain coverage
• Voluntary: typically focused on providing
  greater capacity for risks with exceptionally high
  levels of insurable values
• Intercompany: pooling among affiliated entities
  that are subject to a pooling arrangement.

Question 2

2 General structures of underwriting pools:

Answer 2

-at least one participant acts as servicing carrier,
responsible for policy issuance, claims handling
and general administration

-pool manager/ administrator may perform the
above services in return for payment from the
participants