Transfer of risk

{
  "id": "MLC-T-INS-003358",
  "term": "Transfer of risk",
  "field": "Insurance and risk management",
  "definition": "The shifting of financial responsibility for potential losses from one party to another. This is a fundamental principle of insurance, where the insured transfers the financial burden of specified risks to the insurer in exchange for a premium. It can also occur through contracts, indemnification clauses, or hedging strategies.",
  "url": "https://mlchart.com/terminology/insurance/transfer-of-risk/"
}