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Benefits of pooling of risks.

Benefits of pooling of risks.

  • Enables insurance company to compensate those affected.
  • Enables insurance company to spread risk over larger number of people.
  • Surplus funds are invested to generate profits.
  • Enables the company to meet its operating costs.
  • Enables the company determine the premiums to be charged.
  • Enables the company reinsure itself.


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