Reinsurance
Reinsurance
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Summary of Reinsurance
An arrangement in which an insurance underwriter contractually spreads its policy risks with other underwriters, sharing the premium with them. For example, an underwriter may issue a policy for fifty million dollars to cover the loss of a ship; being unwilling to assume the full risk of loss, the insurer may retain the first five million dollars of risk and invite other insurers to assume portions of the remaining forty-five million dollars at risk in return for an agreed share of the shipowner's premium
. In many cases, prior agreements between underwriters provide for the acceptance of reinsurance risks within a given class and dollar limit; this arrangement is a treaty arrangement. The acceptance of an individual risk in the absence of a treaty is known as a facultative agreement.
(Main Author: William J. Miller)
Reinsurance in Aging Law
Concept of Reinsurance in the context of Community Health Care and Services for Older Persons, published by the World Health Organization (WHO):A mechanism whereby an insurer can cover high-risk losses through insurance from another insurer.
Reinsurance in International Trade
Meaning of Reinsurance, according to the Dictionary of International Trade (Global Negotiator): Reinsurance occurs when multiple insurance companies share risk by purchasing insurance policies from other insurers to limit the total loss the original insurer would experience in case of disaster. By spreading risk, an individual insurance company can take on clients whose coverage would be too great of a burden for the single insurance company to handle alone. When reinsurance occurs, the premium paid by the insured is typically shared by all of the insurance companies involved.
Hierarchical Display of Reinsurance
Finance > Insurance > Insurance
Reinsurance
Concept of Reinsurance
See the dictionary definition of Reinsurance.
Characteristics of Reinsurance
Resources
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Translation of Reinsurance
Spanish: Reaseguro
French: Réassurance
German: Rückversicherung
Italian: Riassicurazione
Portuguese: Resseguro
Polish: Reasekuracja
Thesaurus of Reinsurance
Finance > Insurance > Insurance > Reinsurance
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