What type of insurance arrangement allows for sharing risk among multiple insurers?

The concept of sharing risk among multiple insurers is best captured by syndicate arrangements. A syndicate typically involves a group of insurers who come together to underwrite a particular risk, pooling their resources and expertise to provide coverage that might be too large or complex for any one insurer to handle alone. This collaborative approach allows insurers to spread the potential financial burden associated with large claims across a wider base, effectively sharing both the risk and the premiums received.

While reinsurance does involve one insurer obtaining coverage from another for risks it has already underwritten, it operates differently by transferring risk rather than pooling it. Insurance pooling refers to a more basic sharing mechanism but is often seen in a simplified format and may not specifically involve multiple insurance companies working collaboratively in the same detailed manner as a syndicate. Excess and surplus lines are used to provide coverage for unique or high-risk situations that standard insurers may not cover, rather than focusing on the idea of shared risk among insurers as a primary function.

Thus, the correct answer aligns well with the key principle of collaborative risk sharing among multiple insurers, making syndicates a suitable choice.