Reinsurance

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Related to reinsurer: Quota Share Reinsurance, Facultative reinsurance

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 ?
Facultative reinsurance nearly always obliges reinsurers to follow the claim settlements of the cedants.
Reinsurers have traditionally failed to achieve reliable earnings on a never-ending upward curve, making their shares unattractive to those looking for alpha, let alone beta, delta or lamda.
In fact, all subsequent reinsurance (retrocession) arrangements with foreign reinsurers theoretically are subject to the FET.
A reinsurer bringing A-rated capacity and technical expertise to craft your program will not give you serious consideration if you plan to share their expertise among several markets.
Nagle said the dispute reflects a growing trend among reinsurers to stall and force renegotiation of contracts after obtaining the contract by underpricing the potential losses.
Third, reinsurers should select a jurisdiction or arbitration regime that is experienced and competent.
Thirteen reinsurers reported underwriting losses in 2011, compared to nine in 2012.
The reinsurer in this relationship knows the risk engineering, underwriting and claims expertise that stand behind the primary company's book of business and has a high level of comfort with this insurer's approach.
A person otherwise required to remit the insurance excise tax on account of premiums paid to a foreign insurance or reinsurance company may consider the premiums exempt from the insurance excise tax under an income tax treaty if, before filing the return for the tax period, the person has knowledge that them was in effect for such period a closing agreement between the IRS and the foreign insurer or reinsurer.
A less traditional option used by formalized self-insurance entities is for the risk manager and broker to meet with the reinsurer separately.
Best Special Report, Healthy Earnings Mask Looming Challenges for Global Reinsurers.
Bad faith to a reinsurer often means being intentionally dishonest, which is an exceedingly high level of misconduct.