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They may not be pooling risk, but they may be hiring actuaries to look at their past losses compared to similar businesses, and setting aside a reserve to cover
by mbg721 5y ago
They may not be pooling risk, but they may be hiring actuaries to look at their past losses compared to similar businesses, and setting aside a reserve to cover expected future risk.
- jkhdigital 5y agoI’m sure that’s exactly what they do, but that’s not insurance—just prudent risk management.