Which of the following statements accurately describe stock insurers? Select ALL correct answers.

A.) Their main purpose is making a profit

B.) Policyholders own stock in the company

C.) They are expected to maximize the value of the organization for the benefit of the owners

D.) The board of directors is elected by policyholders

E.) They can convert to a non-profit company through the mutualization process

F.) They are organized in the same way as other privately owned corporations.

Two insurers both cover risks with the same expected distribution of losses. Due to a larger number of exposure units, however, the larger insurer would seem to have less risk compared to a smaller insurer, with fewer exposure units. How can the smaller insurer reduce their uncertainty in predicting losses in order to compete with the larger insurer?

A.) They can adopt risk avoidance strategies to reduce losses.

B.) They can try to reduce the severity of exposures.

C.) They cannot reduce their uncertainty in predicting losses.

D.) They can utilize shared data collected by the insurance industry

E.) They can utilize risk retention methods to reduce losses.