Reinsurance(redirected from reinsures)
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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.
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.
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reinsurancesee INSURANCE COMPANY.
Collins Dictionary of Business, 3rd ed. © 2002, 2005 C Pass, B Lowes, A Pendleton, L Chadwick, D O’Reilly and M Afferson