Research of the Application of Large Numbers Law on Insurance Risk Management

DOI

10.2991/icemet-16.2016.319How to use a DOI?

Keywords

Large Number; Insurance Risk; Application Case

Abstract

Risk management is the risk to risk identification, risk estimation, risk evaluation, risk control, decision-making and action to reduce the negative impact of process risk. With the social development and scientific and technological progress, in real life more and more risk factors. People come up with all sorts of ways to cope with risk. But no matter what method, the general principle is a risk management: the minimum cost for maximum protection. Law of large numbers is an important basic law for insurance business. Law of large numbers of homogeneous risk is among a large share of the insurance unit similar to the theory of the firm economies of scale. Economies of scale of production and operational costs apportioned law of large numbers are risk of dispersion. Scale requires the insurance business is to maintain the financial stability of the insurance company an important condition.

Copyright

© 2016, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Shunjie Yuan
PY  - 2016/05
DA  - 2016/05
TI  - Research of the Application of Large Numbers Law on Insurance Risk Management
BT  - Proceedings of the 2016 International Conference on Economy, Management and Education Technology
PB  - Atlantis Press
SP  - 1471
EP  - 1474
SN  - 2352-5398
UR  - https://doi.org/10.2991/icemet-16.2016.319
DO  - 10.2991/icemet-16.2016.319
ID  - Yuan2016/05
ER  -