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?

Answer rating: 100% (QA)

The smaller insurer can take several measures to reduce uncertainty in predicting losses and enhance ... View the full answer