The theory of probability on which the business of insurance is based. Simply put, this mathematical premise says that the larger the group of units insured, such as sport-utility vehicles, the more accurate the predictions of loss will be.

"Law Of Large Numbers" In Context

"but not too big to succumb to the law of large numbers. The company boasted record sales in 2011, deriving approximately 80% of its revenue from industrial steel uses with 20% coming from the emerging engineered solutions largely related to new energy and ..."