What does a risk purchasing group consist of?

A risk purchasing group is a specific arrangement where a collective of businesses from the same industry come together to obtain insurance coverage. This type of group enables its members to share the risk among themselves and may lead to more favorable insurance rates due to the collective bargaining power they wield. By pooling their resources and needs, these businesses can negotiate better terms with insurers because they can present a larger, aggregated risk profile.

This structure benefits members by allowing them to tailor their insurance coverage to the unique risks of their particular industry while also potentially reducing costs compared to purchasing coverage individually. Such groups are often formed within certain sectors to specifically address the common risk exposures faced by members in that industry.

The other options do not align with the definition of a risk purchasing group. A single large corporation, a group of individuals buying health insurance, or a network of insurance companies do not represent the collective approach to insurance purchasing that characterizes a risk purchasing group.