The Pooling of Risk Leads to an Overall Reduction of Risk

The pooling of risk leads to an overall reduction of risk in society because:

A) insurers' accuracy of prediction improves as the severity of exposures increase.
B) insureds' anxiety of risk decreases as the number of exposures increases.
C) insureds' risk appetite reduces as the severity of exposures increases.
D) insurers' accuracy of prediction improves as the number of exposures increases.
E) insureds' attitude towards risk changes as the number of insurers increases.