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reinsurance

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reinsurance

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Also known as NACE 65.2, NACE 65.20

thumb|Headquarters of the Munich Reinsurance Company

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Subclass of
insurance
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topic's main category
Category:Reinsurance
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via Wikidata · CC0

~17 min read

Encyclopedic overview

24 sections
Contents
  • 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.

Excerpted from Wikipedia’s “reinsurance” article, available under the CC BY-SA 4.0 licence.

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