We use cookies to improve your website experience. To learn about our use of cookies and how you can manage your cookie settings, please see our Cookie Policy. By continuing to use the website, you consent to our use of cookies. Close

CHAPTER 6 FOLLOW THE SETTLEMENTS ANDFOLLOW THE FORTUNES

A Guide to Reinsurance Law

6 FOLLOW THE SETTLEMENTS ANDFOLLOW THE FORTUNES INTRODUCTION Insurance as a concept is predicated upon the law of large numbers—the prediction of losses through accurate statistical analysis of many similar risks, and their transfer from one entity to many others. In essence it is the spreading of risk by one party who may not wish or be unable to bear it all himself over the financial ability of many others to do so, each of whom will pay a small proportion of any loss. The spreading of risk is not only economic; a geographical spread of risk of, say, flood damage in different countries will also avoid an accumulation of exposure by any one insurer to any one source or type of risk.

The rest of this document is only available to i-law.com online subscribers.

If you are already a subscriber, please enter your details below to log in.

Enter your email address to log in as a user on your corporate account.
Remember me on this computer

Not yet an i-law subscriber?

Devices

Request a trial Find out more