reinsurance
thumb|Headquarters of the Munich Reinsurance Company
Article
24 sectionsContents
- Functions
- Risk transfer
- Income smoothing
- Surplus relief
- Arbitrage
- Reinsurer's expertise
- Creating a manageable and profitable portfolio of insured risks
- Types of reinsurance
- Proportional
- Non-proportional
- Risks attaching basis
- Losses occurring basis
- Claims-made basis
- Assumption
- Contracts
- Fronting
- Fronting arrangements
- Subscription placements and retrocession
- Square-root rule
- Security and governance considerations
- History and development
- See also
- References
- External links
thumb|Headquarters of the Munich Reinsurance Company
Reinsurance is insurance purchased by an insurer to transfer part of the risk it has assumed to another insurer, known as the reinsurer. It is used to increase underwriting capacity, share large or catastrophic risks, stabilize financial results, and support capital and solvency management.