spread of risk

Definition of spread of risk

: the extent to which an insurance company by selecting diversified and independent risks that are fairly uniform in size and sufficiently large in number can predict the losses thereon with reasonable accuracy by the law of averages

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Learn More About spread of risk

Dictionary Entries Near spread of risk

spread misère

spread of risk

spread one's wings

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Cite this Entry

“Spread of risk.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/spread%20of%20risk. Accessed 1 Dec. 2021.

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