Which of the following is included under the definition of insurance?

The definition of insurance encompasses a wide range of financial products designed to provide protection against various risks. In this context, primary insurance refers to the direct coverage provided to policyholders, while reinsurance is the method by which insurers mitigate risk by transferring portions of their liabilities to other insurers. These two types of insurance work together in the larger framework of the insurance industry, where both primary policies and reinsurance agreements play critical roles in ensuring the financial stability of insurance companies and their ability to cover claims.

Other options focus on specific areas that do not fit the broader definition of insurance. Health insurance policies, while a type of insurance, do not represent the entire industry; hence, they do not capture the complete picture. Banking and investment activities fall outside the realm of insurance as they do not primarily provide risk protection, but rather opportunities for saving and earning returns. Similarly, retirement planning services focus on financial planning rather than direct risk coverage against unforeseen events. Therefore, the inclusion of both primary insurance and reinsurance presents a comprehensive understanding of what is encompassed under the term "insurance."