Question

How does reinsurance contribute to the strength and stability of insurers and the insurance industry?

a.

By increasing volatility

b.

By reducing capital reserves

c.

By minimizing claim experience

d.

By backing the strength and stability

Answer: (d).By backing the strength and stability Explanation:Reinsurance enhances the strength and stability of insurers and the insurance industry as a whole by providing support and financial backing.

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Q. How does reinsurance contribute to the strength and stability of insurers and the insurance industry?

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