What is Social Protection?

Risk pooling

"Many diseases and accidents are not predictable. This is why they constitute a financial risk for everyone. Risk pooling is a method of alleviating this problem by creating a community – a pool – which agrees to split the risk among all members once it occurs. This has the effect that all pay a small and bearable amount regularly instead of some paying a large amount once the risk occurs."


Source: Normand, C. and Weber, A. 2009. Social health insurance: a guidebook for planning. VAS – Verlag für Akademische Schriften, Second Edition. <https://www.who.int/health_financing/documents/shi-guidebook.pdf>. Accessed 09 June 2020.