What is reinsurance?

  • (noun): Sharing the risk by insurance companies; part or all of the insurer's risk is assumed by other companies in return for part of the premium paid by the insured.
    Example: "Reinsurance enables a client to get coverage that would be too great for any one company to assume"

Reinsurance

Reinsurance is insurance that is purchased by an insurance company (the "ceding company" or "cedant" or "cedent" under the arrangement) from one or more other insurance companies (the "reinsurer") as a means of risk management, sometimes in practice including tax mitigation and other reasons described below. The ceding company and the reinsurer enter into a reinsurance agreement which details the conditions upon which the reinsurer would pay a share of the claims incurred by the ceding company. The reinsurer is paid a "reinsurance premium" by the ceding company, which issues insurance policies to its own policyholders.

Read more about Reinsurance.

Some articles on reinsurance:

Reinsurance - Retrocession
... Reinsurance companies often also purchase reinsurance, a practice known as retrocession ... They typically purchase this reinsurance from other reinsurance companies, but may also retrocede to other insurance companies to spread the risk more widely ... The reinsurance company that buys reinsurance is the "retrocedent" ...
Scor (company)
... typeset SCOR) is a French-based group of financial services companies, primarily focused on reinsurance ... companies of the group include Scor Global P C, which provides property and casualty reinsurance, Scor Global Life, which provides life reinsurance, and Scor ...
David A. Eklund - Career
... Eklund began his reinsurance career in 1983 as an entry level trainee with Constitution Re, the reinsurance arm of the Crum Forster group ... In 1988 he was recruited by Ajit Jain to be the Treaty Department Manager for the Reinsurance Division of Berkshire Hathaway ...
David A. Eklund
... and Chairman of Aeolus Re, a Bermuda based reinsurance firm specializing in property catastrophe reinsurance ... Officer of Renaissance Re, also a Bermuda based reinsurance firm ...
Solvency II Directive - Contents
... Title I General rules on the taking-up and pursuit of direct insurance and reinsurance activities Chapter I Subject matter, scope and definitions Chapter II Taking-up of ...