1, the law of large numbers is the basis on which the modern insurance industry can be established and developed.

2, the law of large numbers is divided into mathematical law of large numbers and statistical law of large numbers.

3, the law of large numbers specifically refers to: a large number of repeated random events under certain conditions will show a certain regularity and stability.

For example, a house fire, the death of a person, a house and a person, it is impossible to predict its occurrence, but as much as possible to bring together more people or houses, observe a certain period of time, then you can measure the number of deaths or fires occurring in the number of pieces of the contingency rate. Another example is a 60-year-old person, the life and death of the next year, 500,000 people aged 60 years of personal data on the statistical analysis, can be found in this category of people will have a stable probability of the number of deaths.

Expanded Information

1. According to the law of large numbers, an insurance company is able to project all the possible future costs, and through reasonable calculations, it can carry out insurance business.

2. By applying the law of large numbers, the uncertainty of the occurrence of chance accidents can be minimized. Therefore, the insurance industry can accurately predict the occurrence of danger. Both can predict, will inevitably try and prevent or avoid its occurrence. The result is to reduce the probability of danger, to achieve the purpose of profit and social stability.

3, the law of large numbers and reinsurance are two important aspects of insurance business operations, in the work of their effective combination, in favor of promoting the stability of business operations.

Hexun.com Yu Hua, deputy general manager of TIBOR life insurance: the law of big data is subverting the law of big numbers