Question

What is the significance of reinsurance for insurers?

a.

It enables them to accept only those risks that they can handle.

b.

It helps them establish a certain balance in their portfolio.

c.

It allows them to avoid competition with other insurers.

d.

It reduces their dependence on direct business.

Posted under IC85 Reinsurance Management

Answer: (b).It helps them establish a certain balance in their portfolio. Explanation:Reinsurance helps insurers establish a certain balance in their portfolio.

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Q. What is the significance of reinsurance for insurers?
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