Pooling is a method used to combine resources or data from multiple sources into a single group. This approach is often utilized in finance, where investors pool their money to create a larger fund, allowing for diversified investments and reduced risk. It can also apply to data collection, where information from various participants is aggregated for analysis. In the context of insurance, pooling refers to the practice of gathering premiums from many policyholders to create a fund that covers claims. This spreads the financial risk among all members, making it more manageable for the insurer and providing coverage for individuals who may face significant losses.