2.) Division of Risk
All insurances are based on a Principle called Division of Risk.
Explanation: All insurances are based upon a principle called Division of Risk. This simply means that, if there is a loss to an individual or several individuals, then the loss will be shared by a large number of individuals. The loss will not be an excessive burden on anyone.
All the insurances (or say, insurance companies) work on this simple principle: Division of Risk.
List of Best Insurance Companies in USA
- Marsh & McLennan
- Prudential Financial
- Hartford Insurance
Source: Top 20 largest US insurance companies - Disfold