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 ?
Sabau has more than 25 years of experience in the French life reinsurance market, holding senior management positions in business development, pricing and actuarial, and treaty administration.
and Transamerica International Reinsurance Ireland Limited, members of the AEGON group, a leading multinational financial services group.
Existing reinsurance programs may or may not provide much coverage for terrorism.
Copies of the full report, The World Catastrophe Reinsurance Market: Steep Peaks Overshadow Plateaus, are available for download at www.
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.
Through its Reinsurance business, Towers Perrin provides global reinsurance intermediary services and consulting expertise that focus on the creative blending of traditional and nontraditional risk transfer vehicles.
Swiss Reinsurance America Corp 34,436,235 1,740,387,468
Fitch believes these controls provide strong, though not absolute, assurance that premium or trust assets could be not used for purposes unrelated to the reinsurance agreements between the parties.