Reinsurance

In effect, insurance that an insurance company buys for its own protection. The risk of loss is spread so a disproportionately large loss under a single policy doesn't fall on one company. Reinsurance enables an insurance company to expand its capacity; stabilize its underwriting results; finance its expanding volume; secure catastrophe protection against shock losses; withdraw from a line of business or a geographical area within a specified time period.

See Also: Risk Class; Risk Retention Groups; Reinsurance Recoverables to Policyholder Surplus; Reinsurance Ceded; Risk Management;

Get our Quick Quotes: Auto Quick Quote Home Quick Quote Life Quick Quote Health Quick Quote and Apply Online Travel Quick Quote and Purchase Online Insurance in California