Describe the loss-distribution approach. What are the two types of risk factors used to determine the distribution

Question:

Describe the loss-distribution approach. What are the two types of risk factors used to determine the of annual losses?
Distribution
The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most...