Reinsurance

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Related to Facultative reinsurance: Quota Share Reinsurance

Reinsurance

The spreading of risk and division of client premiums among insurance companies allowing the sharing of the burden of a large risk.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

reinsurance

see INSURANCE COMPANY.
Collins Dictionary of Business, 3rd ed. © 2002, 2005 C Pass, B Lowes, A Pendleton, L Chadwick, D O’Reilly and M Afferson
References in periodicals archive ?
Facultative reinsurance forms an integral part of many insurance companies' reinsurance arrangements and is frequently used to manage their exposure to the accumulation of risk in certain areas.
"Also, many reinsurers are not allowing any form of facultative reinsurance from Oman.
The automatic nature of treaty reinsurance tends to eliminate some of the reinsurer's exposure to adverse selection that may occur in connection with facultative reinsurance. This is because treaty reinsurance is automatic and does not offer the opportunity to cede only unusually difficult risks.
OdysseyRe is an underwriter of property and casualty treaty, program and facultative reinsurance, and specialty insurance.
Risk managers also should understand what drives the pricing of their facultative reinsurance, how it is priced, and the ceding commission that reinsurers pay to primary underwriters.
First, it was to participate in the property and casualty facultative reinsurance business, which had traditionally been dominated by direct reinsurance writers.
"By combining the facultative reinsurance offerings of Marsh and Guy Carpenter with those from JLT, we will be able to offer insurers and insurance buyers a more efficient way to access global reinsurance markets," James Nash, CEO, International, Guy Carpenter, said in prepared remarks.
("Terra Brasis") is a Brazilian based reinsurer, operating across business lines in both treaty and facultative reinsurance. The company is dedicated exclusively to the Latin American region.
Facultative reinsurance is the type of reinsurance which covers a single risk.
The firm said that it has hired John Eggleston as head of international property facultative reinsurance. Eggleston joins from Italian insurer Assicurazioni Generali (GASI.MI), where he previously served as head of property underwriting for the UK and international division.
* Facultative reinsurance accounted for 54.3% of the premium accepted in 2014, while treaty reinsurance accounted for the remaining 45.7%.

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