Question

What is the primary objective of financial reinsurance?

a.

To maximize profits

b.

To minimize losses

c.

To equalize risk over time

d.

To increase solvency margin

Answer: (c).To equalize risk over time Explanation:The primary objective of financial reinsurance is to strive for risk equalization over time and stabilize the ceding insurer's balance sheet.

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Q. What is the primary objective of financial reinsurance?

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