Jälleenvakuuttajien

Jälleenvakuuttajien refers to reinsurance companies. These are insurance companies that specialize in insuring other insurance companies. Instead of insuring individuals or businesses directly, reinsurers assume a portion of the risk from primary insurers. This practice is known as reinsurance.

Primary insurers use reinsurance for several reasons. Firstly, it allows them to underwrite larger risks than they could otherwise manage, expanding their capacity. Secondly, it provides protection against catastrophic losses, such as those arising from major natural disasters or large-scale accidents. By transferring some of this risk, primary insurers can stabilize their financial results and maintain solvency.

Reinsurance can take various forms. Treaty reinsurance involves the reinsurer automatically accepting a defined portion of all risks within a specific class of business, while facultative reinsurance is negotiated on a case-by-case basis for individual risks. The terms and conditions of reinsurance contracts are complex and depend on factors like the type of risk, the amount of coverage, and the agreed-upon premium.

The reinsurance market is global and plays a vital role in the stability of the overall insurance industry. It helps ensure that even in the face of significant events, insurance companies can continue to pay out claims to their policyholders. Without reinsurance, the insurance sector would be far more vulnerable to large financial shocks.