Law of large numbers

{
  "id": "MLC-T-INS-001967",
  "term": "Law of large numbers",
  "field": "Insurance and risk management",
  "definition": "A statistical principle stating that as the number of exposure units increases, the actual loss experience will more closely approximate the expected loss experience. This principle allows insurers to predict future losses with greater accuracy when they have a large pool of similar risks. It forms the foundation for actuarial science and the pricing of insurance premiums.",
  "url": "https://mlchart.com/terminology/insurance/law-of-large-numbers/"
}