User: What is the basis for the concept of risk pooling?

Note: The concept of pooling risk has been discussed as a possible way that [www.maf.govt.nz/climatechange/reports/forestry-insurance-risk-pooling-mitigation-options/forestry-insurance-risk-pooling-and-mitigation-options.pdf]
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Weegy: A risk pool is one of the forms of risk management mostly practiced by insurance companies. [ Under this system, insurance companies come together to form a pool, which can provide protection to insurance companies against catastrophic risks such as floods, earthquakes etc. The term is also used to describe the pooling of similar risks that underlies the concept of insurance. ]

Note: Also Law of large numbers

Note: Probability Theory is the body of knowledge concerned with measuring the likelihood that something will happen and making predictions on the basis of likelihood.