Question: 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

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 complete with the larger insurer

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