The health insurance systems that could be both, private or public, and are funded on the basis of the principle of pooled risk, which assumes that if there are a few high-risk people and a lot of low-risk people all pay premiums to the insurance system over many years, then there will be a pot of money that could be used to pay for the illnesses and injuries in case they occur. The whole concept is called Pooled risk in terms of the healthcare insurance system.
Van Thompson defines pooled risk as to the insurance practice of which get the principle amount against taking care of health from all the people of high risk and low-risk group. They have named the pooled risk either high or low. This term is generally used very common for all the individuals who are involved in the insurance of their health, car, house or business. So, the term relatively reflects all the policyholders of the insurance.
