MANAGEMENT

Detailed explanation-1: -Insurance is based on the principle of shared risk. The chance of something happening within a certain number of occurrences. The larger the group/ number of events analyzed, the more accurately events can be predicted.

Detailed explanation-2: -Sharing, or pooling, of risk is the central concept of the business of insurance. The idea has the beauty of simplicity combined with practicality. If risks-chances of loss-can be divided among many members of a group, then they need fall but lightly on any single member of the group.

Detailed explanation-3: -Brian Dinz and 27 others like this. True.

Detailed explanation-4: -A health insurance risk pool is a group of individuals whose medical costs are combined to calculate premiums. Pooling risks. together allows the higher costs of the less healthy to be offset by the relatively lower costs of the healthy, either in a plan overall or within a premium rating category.

Detailed explanation-5: -Risk pooling is the practice of sharing all risks among a group of insurance companies. With risk pooling arrangements, instead of participants transferring risk to someone else, each company reduces their own risk.