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![defi_emmy Avatar](https://lunarcrush.com/gi/w:24/cr:twitter::1808954359746867204.png) 𝖣𝖾F𝗂 E𝗆𝗆𝗒.𝗌𝗈𝗅 [@defi_emmy](/creator/twitter/defi_emmy) on x 10.1K followers
Created: 2025-07-24 03:05:57 UTC

A reinsurance company assumes a portion of the risk associated with your policy (and thousands of others).

In exchange, the insurance company pays the reinsurer a small fee, known as a premium.

This means that if a major disaster occurs, the reinsurer will step in and help pay for some of the large claims.

It prevents the original insurance company from going bankrupt.


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**Related Topics**
[insurance](/topic/insurance)

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