What method do insurers use to protect themselves?
Understand the Problem
The question is asking about the methods or strategies that insurance companies employ to mitigate risks and protect their financial stability. This includes various practices like underwriting, reinsurance, diversification, and risk assessment.
Answer
reinsurance
The final answer is reinsurance.
Answer for screen readers
The final answer is reinsurance.
More Information
Reinsurance helps insurance companies manage risks and reduce the financial implications of large claims by transferring some of their risk to other insurers.
Sources
- Reinsurance - FEMA - fema.gov
- NAIC - Insurance Topics | Reinsurance - content.naic.org
- What purpose does reinsurance serve for insurance companies? - info.ccr-re.com
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