Definition of "reinsurance"
  1. A practice where an insurance company transfers all or part of its risk related to an insurance policy to another insurance company, as agreed in a contract
How to use "reinsurance" in a sentence
  1. In order to manage risk and reduce potential losses, the insurance company decided to opt for reinsurance.
  2. The reinsurance policy allowed the first insurance company to spread out risk and ensured financial stability.
  3. Through reinsurance, a portion of the policyholder's risk was passed on to another insurer, decreasing the initial insurer's liability.

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