The agreement of insurers to spread risks among themselves is a major feature of?

The agreement of insurers to spread risks among themselves is a major feature of reinsurance. In simple terms, reinsurance is the practice whereby an insurance company (the reinsurer) agrees to take on some of the risks that another insurance company (the insurer) has already taken on. This is done to limit the amount of risk that any one insurer has to bear, and to spread the risk across multiple companies. By doing so, insurers can protect themselves against losses that could be caused by catastrophic events or other unexpected occurrences. The reinsurer typically receives a premium for taking on this risk, and in return, agrees to pay out some or all of the claims that the insurer would otherwise have had to pay.