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 ?
Currently, only 3 percent of owners use their captives to reinsure pooling agreements.
based Archer Daniels Midland, the flour and grain company, to use its Vermont-based captive to reinsure its group life insurance benefits written by Minnesota Life Insurance Co.
However, no one, including Ace, is reinsuring guaranteed minimum withdrawal benefits, he adds, and the reason is that the risk reinsurers would have to take for that guarantee would make it too expensive to reinsure.
A PORC has historically defined a captive that reinsures risk of another insurance company with the owner of the PORC producing the insurance risk that is reinsured into its captive.
Under terms of the agreement, Prudential would be able to reinsure new policies written by yoei.
The rating affirmations follow Wilton Re's announcement of its intent to reinsure approximately one-half of the life and annuity business of JPMorgan Chase & Co.
The notes, which reinsure Gerling Global, are based on a "notional portfolio" that allows Gerling Global to update its exposure semiannually, the company said.
The African insurance market still reinsures a large portion of the risks it writes locally to European reinsurers, mainly from England, France and Germany.
The EITF reached a consensus that to qualify for reinsurance contract accounting, a contract that reinsures risks arising from short-duration insurance contracts must meet three conditions that relate to qualification as a short-duration contract, risk-transfer issues and the nature of the ultimate premium expected to be paid or received under the contract.
NATIONAL UNDERWRITER and the Reinsurance Section of the Society of Actuaries have compiled Who Reinsures What, the most comprehensive and up-to-date directory of reinsurers in the life, health, annuities and accident lines of business.