Responses
By insuring just a few ships, the insurance company hoped to get lucky and choose ships and voyages that would be successful.
By insuring just a few ships, the insurance company hoped to get lucky and choose ships and voyages that would be successful.
By insuring many categories of cash crops, the insurance company hoped to collect more in premiums than it would pay in losses.
By insuring many categories of cash crops, the insurance company hoped to collect more in premiums than it would pay in losses.
By insuring many ships, the insurance company hoped to use the principles of astrolabes to its advantage.
By insuring many ships, the insurance company hoped to use the principles of astrolabes to its advantage.
By insuring many ships, the insurance company hoped to collect more in premiums than it would pay in losses.
1 answer
The correct response is: By insuring many ships, the insurance company hoped to collect more in premiums than it would pay in losses.
This strategy is based on the principle of risk pooling, where the premiums collected from many policyholders would ideally exceed the claims paid out.
