Reasigurarea

Reasigurarea, or reinsurance, is the practice by which an insurance company transfers part of its risk to one or more other insurers. The aim is to protect the primary insurer against large or accumulated losses, to stabilize underwriting results, and to free capital for additional underwriting. In a reinsurance arrangement, the company seeking protection is called the cedent, while the insurer taking on the risk is the reinsurer. Reinsurance premiums are paid to the reinsurer, and claims are paid by the reinsurer according to the terms of the contract.

There are several types of reinsurance. Proportional reinsurance, including quota share and surplus, involves sharing a fixed percentage of premiums and losses between the cedent and the reinsurer. Non-proportional reinsurance, such as excess of loss and stop-loss, provides coverage once losses exceed a specified amount or aggregate level. Within proportional and non-proportional categories, arrangements can be tailored to different lines of business and risk profiles. Reinsurance can be arranged on a facultative basis, covering individual risks, or on a treaty basis, covering a portfolio of risks under a standing agreement.

Operations in reinsurance also include retrocession, where a reinsurer buys reinsurance to limit its own exposure. Terms commonly involve retention levels, limits, ceding commissions, and detailed definitions of covered perils, currencies, and exclusions. Regulators in many jurisdictions oversee reinsurance activity within the broader insurance market, emphasizing solvency, risk management, and consumer protection.

Reinsurance is a global market with major multinational players and regional firms. It serves as a risk-management tool that enables insurers to underwrite larger or more diverse portfolios, manage capital requirements, and stabilize results, while introducing counterparty risk and the need for rigorous underwriting, due diligence, and regulatory compliance.