The Concept of Insurance 3816762268780510832-blid-1319724667088566628

15/07/62 อิทธิพลวัน อ.มาลี อ.เชิญมีพรม รวมเลขเด็ดชุดที่4

An insurer will choose its premiums based on the risk of an event, in combination with its cost. As an example, if the risk of an event occurring is 1 in 1,000 every day, and the cost of the event is $1,000, than the insurer could expect to break even if they charged a premium of $1 a day. Since the insurer is in the business of earning a profit, they will tend to charge as much more than this as the market is willing to spend.