Question

How does reinsurance help in minimizing losses for insurers?

a.

By increasing claim experience

b.

By reducing risk acceptance

c.

By passing on risks to reinsurers

d.

By decreasing underwriting guidance

Answer: (c).By passing on risks to reinsurers Explanation:Reinsurance minimizes losses for insurers by passing on risks to reinsurers, especially in cases where claim experience is unfavorable to the insurer.

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Q. How does reinsurance help in minimizing losses for insurers?

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