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Insurance

Spread-of-loss treaty

Reinsurance is a crucial concept in the world of finance, and one type that we will explore today is known as "aggregate stop-loss reinsurance." This involves spreading out potential losses over a five-year period, with minimal risk transfer once the five years have passed. It is a strategic way to manage risk and protect against financial setbacks. Let's delve deeper into the intricacies of this concept and gain a deeper understanding of its application in the real world.
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