What Does Risk Smoothing Mean?

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What does Risk Smoothing mean? Read on to discover the definition & meaning of the term Risk Smoothing - to help you better understand the language used in insurance policies.

Risk Smoothing

Risk Smoothing

Financing risk in such a way that the financial impact of incurred losses is distributed between members of the risk pool over more than one financial reporting or policy period. Also known as chronological stabilization plans.

We hope the you have a better understanding of the meaning of Risk Smoothing.

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