Two insurers both cover risks with the same expected distribution of losses. Due to a larger number of exposure units, however, the larger insurer would seem to have less risk compared to a smaller insurer, with fewer exposure units. How can the smaller insurer reduce their uncertainty in predicting losses in order to compete with the larger insurer?

They cannot reduce their uncertainty in predicting losses.

They can utilize shared data collected by the insurance industry

They can try to reduce the severity of exposures.

They can adopt risk avoidance strategies to reduce losses.

They can utilize risk retention methods to reduce losses.