Insurance is a mechanism of
Answers
Answered by
5
Answer:
Insurance is a mechanism through which firms can reduce negative financial consequences of an uncertain event or possible financial loss. ... Pooling of risk, risk transfer, and law of large numbers are important features of insurance.
Answered by
9
Insurance is a risk transfer mechanism that facilitate shifting the cost of a risk away from he (insured) who runs it to an external party (insurer) in exchange for payment of premium (Marshall, 2001).
Similar questions