Question

What is the relationship between reinsurance and insurance?

a.

Reinsurance has developed from insurance

b.

Reinsurance is a completely separate industry from insurance

c.

Insurance and reinsurance have no relationship with each other

d.

Reinsurance is a type of insurance policy that covers losses incurred by an insurer

Posted under IC85 Reinsurance Management

Answer: (a).Reinsurance has developed from insurance Explanation:Reinsurance has developed from insurance and is based on the same principle of risk sharing. Insurers use reinsurance to reduce their exposure to risk and protect their financial stability.

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