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Explain four benefits of the ‘pooling of risks’ to an insurance company

      

Explain four benefits of the ‘pooling of risks’ to an insurance company

  

Answers


Davis
- Enables compensation of few sufferers, hence business
continuity. Reduced burden per
person as it is shared by all the insured.
- Idle funds in case no one suffers or only a few people, company can
invest to earn income
- Probability of all covered risks occurring is minimal if there are
many people in the pool.
Githiari answered the question on September 20, 2017 at 09:53


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