Question

Which among thhe following is a method of risk transfer?

Answer 1

Answer:

Insurance is a method of Risk Transfer.

Explanation:

• The risk management or to take control over the risky situations that shift the risk from one group to another is known as risk transfer.

• Insurance is one way of transferring risk.

• Insurance is an agreement that is down between two groups i.e the policy header, and the insurance company, voluntarily.