Reasekuriyhtiöt

Reasekuriyhtiöt, also known as reinsurance companies, are financial institutions that provide insurance for insurance companies. They act as an insurer for primary insurers, absorbing a portion of the risk that the primary insurer has underwritten. This arrangement allows primary insurers to take on larger or more complex risks than they might otherwise be able to handle, as they can transfer some of that potential liability to a reinsurer.

The primary purpose of reinsurance is to protect insurance companies from catastrophic losses. If a natural disaster or a major event causes a large number of claims to be filed simultaneously, a primary insurer could face insolvency without reinsurance. By sharing this risk, reinsurers help stabilize the insurance market and ensure that policyholders can still be paid claims even in severe circumstances.

Reinsurance can take various forms, including treaty reinsurance and facultative reinsurance. Treaty reinsurance is a pre-arranged agreement where the reinsurer automatically accepts a specified portion of all risks within a certain class of business. Facultative reinsurance, on the other hand, is negotiated on a case-by-case basis for individual risks that may be too large or unusual for standard treaty arrangements.

Reasekuriyhtiöt play a crucial role in the global financial system by enhancing the capacity of insurance companies to underwrite risks, manage their capital more effectively, and maintain their financial stability. They contribute to the overall resilience of the insurance sector against unforeseen events.