The correct answer is A. Reinsurance.
Reinsurance is a form of insurance that protects an insurance company from excessive losses. When an insurance company sells a policy, it is taking on the risk of that policy. If the insured event occurs, the insurance company will have to pay out the claim. If the insured event is very costly, such as a natural disaster, the insurance company could go bankrupt if it has to pay out too many claims. Reinsurance helps to protect the insurance company from this risk by transferring some of the risk to another insurance company.
TPAs, or third-party administrators, are companies that provide administrative services to insurance companies. These services can include claims processing, customer service, and underwriting. TPAs are not insurance companies, and they do not take on any of the risk of the insurance policies that they administer.
Bancassurance is a term used to describe the sale of insurance products through banks. Banks are able to sell insurance products because they have a large customer base and they are able to offer convenient access to insurance products. However,
banks are not insurance companies, and they do not take on any of the risk of the insurance policies that they sell.Actuaries are professionals who use mathematics and statistics to assess risk and to calculate the premiums that insurance companies charge. Actuaries do not take on any of the risk of the insurance policies that they work on.