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Risk Sharing is used in coinsurance specifically where the risk is to be shared and not transferred among several insurance companies each one them having a direct contractual relationship with the insured for the portion of the risk accepted by that company.

and transferring the risk is used in reinsurance , and reinsurance always involves legal entities and not individuals

in reinsurance the contractual relationship is between the cedant and the reinsurer , only in special situations does the reinsurance treaty have a provision called the cut through clause that allows the insured to have a direct legal claim to the reinsurer for example , in the case the insurer becomes insolvent

Hope all is in order

Regards,

Tamer Hadddin

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Q: Difference between risk sharing and risk transfer in insurance in insurance?
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