Q. What is "Reinsurance"?
Answer: Insurance purchased by insurance companies to mitigate their risk
Notes: Reinsurance is insurance that insurers purchase to protect themselves from large claims by spreading the risk to another insurer.
Question Source: 📚This question is part of Banking Awareness - 2025-26 course in GKToday's Android Application. The Course comprises 2400+MCQs on Banking & General Financial Awareness with explanation for All Banking Exams of 2025-26 such as IBPS Bank PO, IBPS Bank Clerical, RRB PO and Clerical, SBI PO and SBI Clerical, IBPS Recruitments, RBI Grade B and RBI Banking Examinations. Download the app here.
📌 Question Number: 13 in Important Terms Related to Insurance Sector in the above course in App.