Which layering option allows multiple insurers to participate in the coverage of a risk?

Layering is a risk management technique that enables multiple insurers to cover different portions of a single risk. This method is often employed for large or complex risks where a single insurer may not have the capacity or appetite to underwrite the entire exposure. By allowing different insurers to participate, layering spreads the risk among various parties, which can enhance the overall stability of the coverage.

In this context, layering creates a structure where each insurer is responsible for a specific layer of the risk, with each layer covering a different portion of the potential loss. This approach not only helps manage capacity but can also lead to more competitive pricing and better terms for the insured.

Other options listed do not encapsulate the concept of shared risk among multiple insurers as effectively as layering does, making it the most suitable choice for this scenario.