Second and alternatively, principals attempt to reduce their exposure to agent abuse by spreading their risk (Heimer 1976). Banks frequently sell their consumer and corporate loans to other corporations, pension funds, and insurance companies (Sandler 1984). Insurance companies develop reinsurance arrangements whereby they resell portions of their policies to other insurers who accept part of the risk in return for a share of the premium.

Shapiro, Susan P., The Social Control of Imper…, loc. 36