Taaskindlustaja

Taaskindlustaja is an Estonian term that translates to "reinsurer." A reinsurer is an insurance company that provides insurance for other insurance companies. This practice is known as reinsurance. Reinsurers help insurance companies manage their risk by transferring a portion of their policy liabilities to the reinsurer. This allows primary insurers to underwrite larger risks, protect themselves from catastrophic losses, and stabilize their financial results.

There are several types of reinsurance arrangements, including facultative reinsurance, where individual risks are reinsured, and treaty reinsurance, where a whole book of business is reinsured under a pre-agreed contract. Reinsurance can also be categorized by how the risk is shared, such as proportional (where the reinsurer shares a percentage of the premiums and losses) and non-proportional (where the reinsurer pays only when losses exceed a certain threshold).

The role of a taaskindlustaja is crucial in the global insurance market. By spreading risk across multiple entities, they contribute to the overall stability of the insurance industry and ensure that even large or unusual claims can be paid. This ultimately benefits policyholders by providing them with greater security and access to a wider range of insurance products.