August 2008 Dec Page
Question of the Month
Reinsurance is an integral part of the property/casualty insurance industry, but its principles may be confusing to those who do not work directly in this area. However complex reinsurance may appear, it is basically a means by which the exposures of insurers are redistributed to other insurers. An insurer (the primary or ceding company) transfers some or all of its exposures and premium to a reinsurer. The reinsurer, in turn, then agrees to indemnify the ceding company for a predetermined type and amount of loss sustained.
Reinsurance also can be used as a back-up for self-insurance and risk retention group programs. It is used in such programs to guard against a catastrophic single occurrence or large aggregate losses, and caps the amount the self-insurer or risk retention participant or group must retain.
Continue Reading for Free
Register and gain access to:
- Quality content from industry experts with over 60 years insurance experience, combined
- Customizable alerts of changes in relevant policies and trends
- Search and navigate Q&As to find answers to your specific questions
- Filter by article, discussion, analysis and more to find the exact information you’re looking for
- Continually updated to bring you the latest reports, trending topics, and coverage analysis
Already have an account? Sign In Now