What method involves a group of individuals sharing losses based on similar exposure?

The correct answer is sharing, as this term directly refers to the concept of individuals in a group collectively bearing the financial burden of losses that affect them due to similar risks or exposures. In this context, sharing implies a mutual agreement among the group members to support one another in the event of a loss, effectively distributing the financial impact across the entire group rather than leaving it to fall upon any single individual.

Pooling, while similar in that it involves a group, typically refers to arranging resources or risks together in an insurance context but does not capture the essence of individuals actively participating in sharing losses. Risk Management is a broader discipline that involves identifying, assessing, and prioritizing risks, aiming to minimize their impact. Cohort Coverage is not a standard term recognized in the context of insurance or loss-sharing, which makes sharing the most appropriate answer.