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 ?
In proportional agreements, the primary insurer and reinsurer share the liability risk proportionately.
It is therefore of utmost importance that you identify and explain all possible characteristics and aspects of your business, including those shown above in Assumption "A" (Choice of Mortality Table) to each reinsurer quoting, that would tend to justify an assumption of a flatter mortality slope than the 1990-95 (2001 VBT) select/ultimate table.
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.
Reinsurers that declined to become national reinsurers or POE reinsurers could continue to operate under the current NAIC Credit for Reinsurance Model Act.
49) As a result, the court held that the follow- the-settlements doctrine did not obligate the reinsurer to indemnify the cedent for those claims that did not fall within the policy period.
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.
Facultative reinsurance nearly always obliges reinsurers to follow the claim settlements of the cedants.
Three reinsurers in the group -- Endurance Reinsurance Corp.
THE LIFE REINSURANCE market is stable and strong, although shrinking cession rates may impact business going forward and compel reinsurers to look for ways to boost revenue, according to all major rating agencies that put out reports in September.
Real risk sharing creates a spirit of partnership between a reinsurer and ceding company.