Question

Reinsurers are often referred to as "the bankers to the insurance industry" because:

a.

They provide financial support to weak insurance companies.

b.

They offer loans to policyholders.

c.

They operate similar to banks in terms of financial transactions.

d.

They invest heavily in the banking sector.

Answer: (c).They operate similar to banks in terms of financial transactions. Explanation:Reinsurers are often referred to as "the bankers to the insurance industry" because their services can operate more as a means of finance rather than just a transfer of risk. This implies that their operations resemble those of banks in terms of financial transactions.

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Q. Reinsurers are often referred to as "the bankers to the insurance industry" because:

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