Reciprocal Insurance

Reciprocal insurance offers insurance coverage for insured members that are pooled together as similar, homogenous risks. Ideally, for instance, there should not be a trucking company in the same pool as municipal recreation centres; the risks are too different. That homogeneity is an important underwriting element. It can be similar risks within a geographic location: hospitals in a particular region will all have similar property risk profiles: the same relevant legislation and funding will apply to their operations.