February 23, 2005
Loss Sharing
Loss Sharing; also known as the Spreading of Risk and the Pooling of Risks. Transferring the risk of a single individual across a group whereby each member of the gbroup shares the losses and also has the promise of future benefit.
Filed under Money Glossary by Tracy Phaup
February 14, 2005
Law of Large Numbers
This is a fundamental principle underlying the insurance industry. The larger the number of individual risks (exposures) that are combined into a group, the more certainty there is as to the amount of loss incurrered in any given period.
Filed under Money Glossary by Tracy Phaup
February 12, 2005
Exposure
The level of exposure that the company undergoes based on the number of individual risks.
Filed under Money Glossary by Tracy Phaup
February 4, 2005
Pooling of Risks
Pooling of Risks; also known as the Spreading of Risk and the Loss Sharing. Transferring the risk of a single individual across a group whereby each member of the gbroup shares the losses and also has the promise of future benefit.
Filed under Money Glossary by Tracy Phaup
February 3, 2005
Spreading of Risk
Spreading of Risk; also known as the Loss Sharing and the Pooling of Risks. Transferring the risk of a single individual across a group whereby each member of the group shares the losses and also has the promise of future benefit.
Filed under Money Glossary by Tracy Phaup
