How Does an Insurance Company's Risk Management Work in Terms

How does an insurance company's risk management work in terms of distribution?

A) The insurance company transfers the risk to a larger group of people.
B) The insurance company transfers the risk to a different company.
C) The insurance company charges those with a higher risk a higher premium.
D) The insurance company distributes risk among all of its insured customers and if loss occurs, one party is not forced to bear the entire weight of it.
E) The insurance company distributes risk among a group with similar risk and if loss occurs, one party is not forced to bear the entire weight of it.