Reinsurance is the process of insurance companies insuring underwritten policies with other institutions in order to offset exposure. This procedure is used by insurance companies to reduce outright risks associated with underwritten policies by spreading risks across alternative institutions. It's like buying an insurance policy for an insurance policy.
Gordon Str
2005-12-09 01:52:18 UTC
Insurance for insurers.
It's a way for insurance companies to share the risk on their biggest potential liabilities to ensure that a catastrophe doesn't wipe them out.
Go to wikipedia for a fuller technical explanation.
ⓘ
This content was originally posted on Y! Answers, a Q&A website that shut down in 2021.
Continue reading on narkive:
Search results for 'reinsurance?' (Questions and Answers)