Reinsurance. It's a way of transferring or "ceding" some of the financial risk insurance companies assume in insuring cars, homes and businesses to another insurance company, the reinsurer. S. professional reinsurers (companies that are formed specifically to provide reinsurance) accounted.
Definition: It is a process whereby one entity (the reinsurer) takes on all or part of the risk covered under a policy issued by an insurance company in consideration of a premium payment. Reinsurance, also known as insurance for insurers or stop-loss insurance, is the practice of insurers transferring portions of risk portfolios to other parties by some form of agreement to reduce. Description: Unlike co-insurance where several insurance companies come together to issue one single risk, reinsurers are typically.
Definition: It is a process whereby one entity (the reinsurer) takes on all or part of the risk covered under a policy issued by an insurance company in consideration of a premium payment.
Issue: Reinsurance, often referred to as insurance of insurance companies, is a contract of indemnity between a reinsurer and an insurer.
A reimbursement system that protects insurers from very high claims. Reinsurance is insurance that an insurance company purchases from another insurance company to insulate itself (at least in part) from the risk of a major claims event. Reinsurance risk refers to the inability of the ceding company or the primary insurer to obtain insurance from a reinsurer at the right time and at an appropriate cost.
Post a Comment