Question

What is the role of reinsurers in the insurance industry?

a.

To pass on risk to other insurers

b.

To provide permanent capital to insurers

c.

To operate as financiers in addition to risk recipients

d.

To create syndicates for underwriting activities

Answer: (c).To operate as financiers in addition to risk recipients Explanation:Reinsurers have been as much financiers as recipients of risk in the insurance industry.

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Q. What is the role of reinsurers in the insurance industry?

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