保险英语专业词汇（7）
——Law of large numbers

1.        Insurance:

Insurance is a risk management technique(风险管理工具) that transfer some or all of the potential consequence (liabilities) for certain loss exposures from the insured to the insurer.

2.        Law of large numbers:

A mathematical principle stating that as the number of similar but independent exposure units increases, the relative accuracy of predictions(预测) about future outcomes (losses) also increases.

3.        Steps in risk management process

(1)     Identify loss exposures;

(2)     Analyze loss exposures;

(3)     Examine the feasibility of risk management techniques;

(4)     Select most appropriate techniques;

(5)     Implement risk management techniques;

(6)     Monitor results and make changes as needed.