Summary |
The first simplification in the study of Insurance and reinsurance is to consider it as it appears at a certain moment, i.e., at rest. All the relations and proportions between the features and items appear thus in a fixed state in which the distribution of the risks can be studied. The study of a matter at rest is called “Statics”. Thus statics in insurance or reinsurance is the study of its distribution in space.
In this study the geometrical method is applied by which many features and relations appear clearly in diagrammatic representation. Apart from this also problems can be solved by geometrical methods, the most important being the graphical integration by which transformations from one kind of representation into another are obtained by simple geometrical means, assuming the sense of arithmetical calculations. It is obvious that a diagram can be drawn only as a representation of tabulated figures, but once having drawn the first diagram, further deduction can be constructed geometrically which, in several instances, means time-saving.
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