Large Number Of Comparable

Large number of comparable exposure units:

Since insurance operates through pooling resources, the bulk of insurance policies square measure provided for individual members of enormous categories, permitting insurers to learn from the law of enormous numbers within which foretold losses square measure like the particular losses. Exceptions embrace Lloyd's of London, that is known for insuring the life or health of actors, sports figures, and different notable people. However, all exposures can have specific variations, which can cause completely different premium rates.