96.2k views
5 votes
Why INSURANCE Companies willing to accept risk?​

User Smackcrane
by
4.4k points

2 Answers

3 votes
There are various reasons why companies may choose risk acceptance in certain situations. The most common reason is that the cost of other risk management options, such as avoidance or limitation, may outweigh the cost of the risk itself
User Rikky
by
3.4k points
5 votes

Answer:

This helps the insurer determine the amount (premium) to charge for insurance.

User Fresz
by
3.3k points