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What is the basis for the concept of risk pooling?
The basis for the concept of risk pooling is to share or reduce risks that no single member could absorb on their own. Hence, risk pooling reduces a person or fim's exposure to financial loss by spreading the risk among many members or companies. Actuarial concepts used in risk pooling include:
A. statistical variation.B. the law of averages.C. the law of large numbers.D. the laws of probability.
Wiki User
∙ 13y ago
Wiki User
∙ 13y agoAnswer: Law of large numbers
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What is the basic concept of risk pooling?
The basic concept of risk pooling is to ascertain the mortality rate,financial background, literary parameter of the insured while issuing life policy to a person.
Questions and answers on ic-33 new syllabus?
pooling of risk
Difference between pooling of risk in shortterm and longterm insurance?
terms period
How does life insurance differ from other types of insurance?
Life insurance is not based on risk pooling.
What is pooling risks?
what is pooling of risks? This is when a premium is payed by a number of people facing a similar risk into a pool of compensation in the case of any unknown expense. eg repair of a damaged store or even replacement.
What is pooling of risks?
what is pooling of risks? This is when a premium is payed by a number of people facing a similar risk into a pool of compensation in the case of any unknown expense. eg repair of a damaged store or even replacement.
What are the basic principles of life insurance?
There are, in fact, a wide variety of "basic" principles of life insurance. Some of these principles include risk management, risk pooling, and human life value.
How do you explain Define?
to provide an explanation of the meaning of a word or concept
What is the explanation for the concept of marginalism in economics?
consumers surplus define
Basic concept of risk and return?
The higher the risk, the higher the return.
Discuss the concept of risk and how it might be measured?
Risk refers to the source of danger. It is a possibility of incurring some misfortune or loss. The concept of risk is very important as it helps provide cover.
What is pooling of risk with reference to re-insurance and short-term insurance?
this refers to the payment of premiums into a fund or pool to pay for the losses that occur
