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.
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 ?
Even smaller firms with no American business commonly reinsure their operations through major firms like Lloyd's, which now will no longer do reinsurance for shipments to Iran either.
Use Who Reinsures What to develop relationships with the right companies, keeping your underwriting results stable and protecting your company from catastrophic losses.
The following summarizes the potential structure of a transaction to reinsure a block of business with low volatility and the associated assets as major sources of the strain.
This structure would eliminate the need to find life, accident and health carriers willing to provide reasonably priced fronting services, and reinsure the risk to the captive.
Look for the Who Reinsures What logo and click on it for access to the online edition of this publication.
A typical PORC reinsures credit insurance and/or warranty/extended-service-contract risk.
Manulife reinsures its plans, so reserves are not a concern, but keeping the market open is critical.
In the third portion of her book, Swartz presents a proposal in which the federal government serves as the reinsurer of high-risk health insurance, similar to the way in which federal programs reinsure terrorism or natural disasters.