Spreading of risks among insurance entities is called:

Question

Quizplus · Accepted Answer

Reinsurance is the process by which insurance entities transfer some or all of their risks to another insurance company in exchange for a premium. This helps to spread the risk among multiple entities, reducing the burden on a single insurer and protecting against catastrophic losses. Syndication and consortium acts refer to the pooling of resources among multiple individuals or entities for a specific purpose, and risk diffusion is not a commonly used term in the insurance industry.

Spreading of Risks Among Insurance Entities Is Called