Reinsurance

Reinsurance

In effect, insurance that an insurance company buys for its own protection. The risk of loss is spread so a disproportionately large loss under a single policy doesn't fall on one company. Reinsurance enables an insurance company to expand its capacity; stabilise its underwriting results; finance its expanding volume; secure catastrophe protection against shock losses; withdraw from a line of business or a geographical area within a specified time period.

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Part of Speech: noun
Synonym(s):
Blossary:
Industry/Domain: Insurance
Category: Life insurance
Company:
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Acronym-Abbreviation:

Collect to Blossary

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Related terms

reinsurer

Financial services; Accountancy

The party that has an obligation under a reinsurance contract to compensate a cedant if an insured event occurs.

reinsurance

Financial services; General Finance

The spreading of risk and division of client premiums among insurance companies allowing the sharing of the burden of a large risk.

reinsurance

Insurance; Life insurance

In effect, insurance that an insurance company buys for its own protection. The risk of loss is spread so a disproportionately large loss under a single policy doesn't fall on one ...

reinsurance

Health care; General

An insurance arrangement whereby the MCO or provider is reimbursed by a third party for costs exceeding a pre-set limit, usually an annual maximum. A method of limiting the risk ...

reinsurance

Law; Legal services; General law

A contract by which one insurance company insures itself with another insurance company to protect itself against all or part of the risk it took on by insuring a customer.

Lloyd's

Insurance; Life insurance

Generally refers to Lloyd's of London, England, an institution within which individual underwriters accept or reject the risks offered to them. The Lloyd's Corp. provides the ...

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Insurance; Life insurance

These organizations are voluntary unincorporated associations of individuals. Each individual assumes a specified portion of the liability under each policy issued. The ...

National Association of Insurance Commissioners (NAIC)

Insurance; Life insurance

Association of state insurance commissioners whose purpose is to promote uniformity of insurance regulation, monitor insurance solvency and develop model laws for passage by state ...

dividend

Insurance; Life insurance

The return of part of the policy's premium for a policy issued on a participating basis by either a mutual or stock insurer. A portion of the surplus paid to the stockholders of a ...

earned premium

Insurance; Life insurance

The amount of the premium that as been paid for in advance that has been "earned" by virtue of the fact that time has passed without claim. A three-year policy that has been paid ...