What term describes a large number of units having the same or similar exposure to loss in insurance?

The term that describes a large number of units having the same or similar exposure to loss in insurance is "homogeneous." In the context of insurance, a homogeneous population allows insurers to assess and predict risk more accurately, as the units share similar characteristics or circumstances that affect their likelihood of loss.

For example, if an insurance company is insuring homes in a specific area that experiences similar environmental risks, the homes represent a homogeneous group in terms of exposure. This consistency in exposure allows insurers to utilize statistical methods to determine premium rates, assess risk levels, and create policies more effectively.

The other terms do not convey the same meaning. A risk matrix is a tool used to evaluate and prioritize risks but does not describe the uniformity of a group. Diversification refers to spreading investments or risks across various assets or members to reduce the overall risk. Liability pertains to the legal responsibility for damages or loss and does not encompass the concept of exposure similarity among units.