question 1

explain in words, what capital is required for, and the mechanism by which diversification reduces such a requirement

question 2

In the era of big data, more information is available to insurers, that can be used to determine the premium of policyholders. Provide an example of one such new information that could be used as a rating factor. For this example of rating factor, explain one positive aspect, and one negative aspect of using it to discriminate between risks. In the era of big data, more information is available to insurers, that can be used to determine the premium of policyholders. Provide an example of one such new information that could be used as a rating factor. For this example of rating factor, explain one positive aspect, and one negative aspect of using it to discriminate between risks