Reinsurance

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Reinsurance

The spreading of risk and division of client premiums among insurance companies allowing the sharing of the burden of a large risk.

Reinsurance

An insurance policy for insurers. In reinsurance, one insurer cedes a portion of its portfolio of policyholders to another insurer in exchange for paying a fee. There exists the possibility that too many policyholders will make a claim and a single insurer will be unable to pay the benefit without ruining itself. This is especially true for disaster insurance and other similar policies. Reinsurance reduces this risk. It is also called stop-loss insurance.

reinsurance

see INSURANCE COMPANY.
References in periodicals archive ?
In 2007, the Egyptian Re-insurance Company was merged with Egypt's Insurance Company, forming a department of re-insurance.
Instead, to accept risks for coffee and other difficult commodities, niche underwriters take specific re-insurance called "facultative re-insurance.
The precise nature of Independent's re-insurance difficulties are not known, except that the premium on a contract taken out earlier this year is said to be pounds 110 million against cover for pounds 278 million.
In an essay published a few years ago, I constructed the returns from bearing cat risk exposures over a 20-year period using historical cat re-insurance contracts.
The specialty finance sector includes equipment rental/leasing companies, specialty insurance and re-insurance companies, and other finance companies specializing in areas such as payday lending, title lending, and mortgage lending.
Uganda's first re-insurance company has been launched amidst plans to list on the Uganda Securities Exchange within the first two years of the company's existence.
The Brazilian government's National Development Bank, BNDES, has released details of its planned privatisation of re-insurance company, IRB-Brasil Re.
The firm is currently assisting several other Insurance, Re-Insurance and Re-Takaful companies to set up in the DIFC.
On one hand it would decrease the outflow of re-insurance business from the ECO region and on the other under the present environment of liberalization would enhance the re-insurance business beyond the ECO region.
Arab and Tunisian experts taking part in this meeting, organised by the Tunisian Insurance Companies Federation in association with the Arab Insurance Union and the Tunisian Re-insurance Company on the 18th-20th instant in Tunis, express, in a message sent to the Head of State, satisfaction at the special interest he takes in energising joint Arab action and his constant care to consolidate co-operation among Arab countries.
But without the 'federal backstop' of terrorism re-insurance, Mills said, insurers would not be able to offer affordable products to insure such areas.
and Munich American Risk Partners, an affiliate of American Re-Insurance Co.