What does Law of Large Numbers mean? Read on to discover the definition & meaning of the term Law of Large Numbers - to help you better understand the language used in insurance policies.
Law of Large Numbers
Basic principle of insurance that the larger the number of individual risks combined into a group, the more certainty there is in predicting the degree or amount of loss that will be incurred in any given period.
We hope the you have a better understanding of the meaning of Law of Large Numbers.