Final answer:
Insurance companies use the law of large numbers, experience of morbidity, and average mortality incidents to predict individual risk increases.
Explanation:
Insurance companies predict the increase of individual risks through various methods:
- Law of large numbers: This principle allows insurers to rely on statistical probabilities based on a large number of observations, helping them predict future risks accurately.
- Experience of morbidity: By analyzing historical data on sickness and disease patterns within specific groups, insurers can estimate individual risks.
- Average mortality incidents: Studying past mortality rates assists insurers in forecasting future risks associated with life insurance policies.
These methods help insurers adjust premiums to cover potential claims and ensure profitability.
Learn more about Insurance risk assessment here:
https://brainly.com/question/34940597
