Reason for existence of insurance companies, Finance Basics

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Reason for existence of insurance companies

The main (economic) reason for the existence of insurance companies is:

a. individuals need to diversify risk
b. insurers' ability to predict individual losses
c. insurers' ability to form efficient risk pools with minimal contracting costs
d. individuals inability to determine expected loss

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Finance Basics: Reason for existence of insurance companies

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Finance Basics: Reason for existence of insurance companies

Reference No:- TGS042294

Have a Question? (oR Write a Review)

Recent Questions Asked Finance Basics

Q : Wholesaler to customs and excise

Q : Npv and project payback period

Q : What amount should olsen report as its pension liability

Q : How much of surplus will exist when supply is reduced

Q : Reason for existence of insurance companies

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Request for Solution File

Ask an Expert for Answer!!

Finance Basics: Reason for existence of insurance companies

Reference No:- TGS042294

Recent Questions Asked Finance Basics

Q : Wholesaler to customs and excise

Q : Npv and project payback period

Q : What amount should olsen report as its pension liability

Q : How much of surplus will exist when supply is reduced

Q : Reason for existence of insurance companies

Q : Determine jacqueline cost recovery

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Q : What is pavlina cost recovery

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