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Reassurance is a type of insurance that provides financial protection against certain risks, often through reinsurance arrangements. It involves one insurance company (the reinsurer) taking on some of the risks from another insurance company, thereby helping to stabilize the latter's finances. This allows the primary insurer to offer more coverage to policyholders while managing their overall risk exposure. Essentially, reassurance insurance acts as a safety net for insurance companies, ensuring they can meet their obligations even in high-claim scenarios.

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1w ago

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