In general, aggregate losses must be predictable in advance for an insurance system to work properly.

Name: In general, aggregate losses must be predictable in advance for an insurance system to work properly.
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If aggregate losses cannot be predicted in advance, insurance companies may not be able to accurately determine appropriate premiums and may run the risk of insolvency if unexpected losses occur. Predictability allows for better risk management and planning within the insurance industry.

In General, Aggregate Losses Must Be Predictable in Advance for an Insurance