The Risk of an Insurer with More Exposures Is Relatively

The risk of an insurer with more exposures is relatively lower than that of an insurer with fewer exposures under the same expected distribution of losses.How do small insurers reduce the uncertainty in predicting losses?

A) They use the sharing of data that exists in the insurance industry.
B) They try to reduce the severity of exposures.
C) They use the risk avoidance method to reduce losses.
D) They use the risk retention method to reduce losses.
E) They cannot reduce the uncertainty in predicting losses.