It has been almost two decades since Taiwan started to enforce the new system of the “Compulsory Automobile Liability Insurance”. The enforcement has allowed the injured or deceased victims of automobile traffic incidents to be able to quickly acquire basic protection. This kind of national policy insurance is classified as a government-sponsored private business, so the method adopted by insurers for this business shall be bound by law. Hence, many insurers use co-insurance pools for the Compulsory Automobile Liability Insurance in an attempt to disperse their risk. This paper explores, studies and analyzes the current co-insurance pool status, operation models and operation effects, and provides recommendations from the standpoint of practical operation.