Risk pooling:
A)reduces the chances of catastrophes happening.
B)lowers the costs of catastrophes when they occur.
C)reduces the cost to an individual if a catastrophe occurs.
D)All of these are true.

Question

Quizplus · Accepted Answer

Risk pooling does not reduce the chances of catastrophes happening or lower the costs of catastrophes themselves, but it does reduce the cost to an individual if a catastrophe occurs by spreading the risk among a larger group.

Risk Pooling