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 ?
Existing reinsurance programs may or may not provide much coverage for terrorism.
In the 1980s and 1990s, the reinsurance market was inundated with unanticipated pollution, asbestos and other toxic tort claims that led to arbitration proceedings.
While demand for this coverage continues, the market in general is shrinking due to changes in mechanisms for risk transfer for health-care services, said Carol Adams, managing actuary, accident and health, of Irving, Texas-headquartered TIG Insurance and past-president of the Provider Excess Loss Association, a nonprofit trade group for companies doing business in the provider excess-loss reinsurance market.
But as the remaining independent reinsurance brokers assess the altered landscape, they also are focusing on the challenge to offer more services to clients and competition from direct reinsurance writers.
Swiss Reinsurance America Corp 34,436,235 1,740,387,468