Insurance is often an effective way to reduce risk when the insurance company can spread its risk over many different policies.

Name: Insurance is often an effective way to reduce risk when the insurance company can spread its risk over many different policies.
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Insurance companies are able to reduce risk by pooling premiums from many policyholders and using that money to cover losses within the group. This allows the company to spread risk and effectively manage the cost of claims.

Insurance Is Often an Effective Way to Reduce Risk When