Document background
The Insurance Pooling Agreement is essential when multiple insurers in Hong Kong wish to collaborate in sharing specific categories of risks that may be too large or complex for individual insurers to handle alone. This document, regulated under Hong Kong's Insurance Ordinance and overseen by the Insurance Authority, provides a formal structure for insurers to pool their capacity and expertise. The agreement typically includes detailed provisions for risk sharing ratios, premium allocation, claims handling procedures, and governance mechanisms. It's particularly valuable for specialized risks, catastrophic coverage, or instances where market capacity needs to be maximized through cooperative arrangements. The document ensures compliance with Hong Kong's regulatory requirements while facilitating efficient risk distribution among pool participants.
