Pool vs RRG
in GAO.Report
Is there a difference between intercompany pooling and a RRG?
My understanding is that they both pool their risks, and while the battle cards to not say that the premium is shared in a RRG if the risks are then I would assume the premiums would be as well.
Comments
These two are different concepts. RRG, as explained in the wiki, is a collective of a number of similar businesses, with the intent of self-insuring their risks. Intercompany pooling is an accounting and reporting arrangement for an insurance company with multiple subsidiaries. The subsidiaries usually provide rating tiers, and the pooling is an after-the-fact arrangement to share premiums and losses among the companies.