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 ?
As more securitizations are undertaken by sizeable players in the insurance industry, insurance and reinsurance companies will increasingly become originators of risk as opposed to warehousers of risk.
Additionally, where an insurance group is made up of both primary and reinsurance companies, the new methodology has in some cases resulted in a downward revision of IFS ratings for the reinsurance subsidiaries to a level below that of the related primary companies reflecting the lower recovery expectations in default for reinsurance policyholders relative to primary policyholders.
For current Best's Ratings, independent data and analysis on more than 330 reinsurance companies, please visit www.
A distinguished panel of insurance industry leaders selected RGA from among the largest life reinsurance companies in the world.