Sorry! No results were found.
Market Research Assistance
- + 1-888-391-5441
- [email protected]
Reinsurance is insurance coverage that is bought by an insurance company (insurer also typically known as a "cedant" or "cedent") from another insurance company (reinsurer) as a means of risk management. The insurer and the reinsurer enter right into a reinsurance agreement which particulars the conditions upon which the reinsurer would pay the insurer's losses (when it comes to excess of loss or proportional to loss). The reinsurer is paid a reinsurance premium by the insurer, and the insurer issues insurance policies to its own policyholders. The primary purpose for insurers to buy reinsurance is to switch threat from the insurer to the reinsurer, however reinsurance has numerous other functions as defined below.
For example, assume an insurer sells one thousand insurance policies, each with a $1 million coverage limit. Theoretically, the insurer might lose $1 million on every policy - totaling up to $1 billion. It may be better to cross some danger to a reinsurance company (reinsur...
View More
For example, assume an insurer sells one thousand insurance policies, each with a $1 million coverage limit. Theoretically, the insurer might lose $1 million on every policy - totaling up to $1 billion. It may be better to cross some danger to a reinsurance company (reinsur...
View More
Reinsurance is insurance coverage that is bought by an insurance company (insurer also typically known as a "cedant" or "cedent") from another insurance company (reinsurer) as a means of risk management. The insurer and the reinsurer enter right into a reinsurance agreement which particulars the conditions upon which the reinsurer would pay the insurer's losses (when it comes to excess of loss or proportional to loss). The reinsurer is paid a reinsurance premium by the insurer, and the insurer issues insurance policies to its own policyholders. The primary purpose for insurers to buy reinsurance is to switch threat from the insurer to the reinsurer, however reinsurance has numerous other functions as defined below.
For example, assume an insurer sells one thousand insurance policies, each with a $1 million coverage limit. Theoretically, the insurer might lose $1 million on every policy - totaling up to $1 billion. It may be better to cross some danger to a reinsurance company (reinsurer) as this will cut back the insurer's exposure to risk.
There are primary strategies of reinsurance:
Facultative Reinsurance In facultative reinsurance, the ceding company cedes and the reinsurer assumes all or part of the danger assumed by a particular specified insurance policy. Facultative reinsurance is negotiated individually for every insurance contract that is reinsured.
View Less
For example, assume an insurer sells one thousand insurance policies, each with a $1 million coverage limit. Theoretically, the insurer might lose $1 million on every policy - totaling up to $1 billion. It may be better to cross some danger to a reinsurance company (reinsurer) as this will cut back the insurer's exposure to risk.
There are primary strategies of reinsurance:
Facultative Reinsurance In facultative reinsurance, the ceding company cedes and the reinsurer assumes all or part of the danger assumed by a particular specified insurance policy. Facultative reinsurance is negotiated individually for every insurance contract that is reinsured.
View Less