what is reinsurance?
can u please explain it in simple language
Dear Student,
Reinsurance is when an insurance company insures itself against the risk by purchasing insurance policy from some other company. The insurance company here transfers the risk to another insurance company.
This is mainly done to safeguard the insurance companies from getting insolvent.
Reinsurance is when an insurance company insures itself against the risk by purchasing insurance policy from some other company. The insurance company here transfers the risk to another insurance company.
This is mainly done to safeguard the insurance companies from getting insolvent.