reinsurance
- 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
- In order to manage risk and reduce potential losses, the insurance company decided to opt for reinsurance.
- The reinsurance policy allowed the first insurance company to spread out risk and ensured financial stability.
- 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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