If insurers have insufficient pricing information available for a particular exposure:
A) they go bankrupt
B) they will need to create a larger risk pool
C) they will probably be unwilling to provide insurance for that particular loss exposure
D) they will assume more risk

Question

Quizplus · Accepted Answer

Insurers are generally unwilling to provide insurance for a particular loss exposure if they do not have sufficient pricing information available for that exposure. This is because they would not be able to accurately calculate the potential risk involved and pricing the insurance policy would be difficult.

If Insurers Have Insufficient Pricing Information Available for a Particular