Internal:Training/IFRS17/Why insurance exists: Difference between revisions
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🤔 '''Think about it.''' If one homeowner cannot comfortably absorb a €15,000 loss, what would happen if hundreds of homeowners facing the same type of risk decided to share the burden? Could that change the arithmetic?
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* Pooling solves this by spreading the cost of losses across a large group, turning an unpredictable individual burden into a small, predictable shared contribution.
* An insurer organises and sustains the pool by underwriting risk, collecting premiums, managing funds, settling claims, and operating under strict regulatory oversight to ensure it can keep its promises.
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