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 treaty contract, the reinsuring company are bound to accept all the risks that are mentioned in the contract.
Reinsuring Health is divided into three broad sections: a comparison of how the face of the uninsured have changed from 1979 to 2004, a description of how the individual and small-group health insurance markets currently operate, and final proposal for a new public-private structure that may make private health insurance more affordable.
Lenders must be prepared to contribute capital to the captive to support the risk of reinsuring a coverage as volatile as mortgage insurance.
Steve Johnson, deputy insurance commissioner with the Pennsylvania insurance department, says that the cost of reinsuring Penn Treaty's LTCI business had gone up dramatically, which resulted in the block of business being recaptured from Imagine International Reinsurance, Ltd., Dublin, its reinsurer.
Scottish Re marketed the notes through Ballantyne Re, a public limited company formed in Ireland for the sole purpose of reinsuring the block of business.
AN ANTI-CONDUIT provision within a treaty holds that an insurer reinsuring its risks in a second country cannot circumvent paying its taxes (or pay a lower rate) by reinsuring through a third country that may have a lower or zero tax rate with the second country.
Three or four years ago there was not much capacity for reinsuring variable annuities with guarantees, says Russell Hackmann, a managing director and head of variable annuity risk management with Swiss Re, New York.
* Pricing pressure and improved technical techniques for measuring risk are encouraging securitization as an alternative to reinsuring risk.
Insurers may accept bad risks at inadequate rates without reinsuring the business.
Several years ago, reinsurers did make a foray into reinsuring products with guarantees, experienced losses and stopped reinsuring these risks for a time.
Foreman said he suspects the Greek market is absorbing that risk before reinsuring it into the facultative market.
THE MARKET FOR REINSURING variable annuity guarantees, shut tight for a number of years, opened a crack with the recent announcement that Lincoln National's guaranteed minimum withdrawal benefit would be reinsured by Swiss Re.