Viszontbiztosítás

Viszontbiztosítás, often translated as reinsurance, is a crucial mechanism within the insurance industry. It is essentially insurance for insurance companies. When an insurance company issues a policy to a client, it takes on a certain amount of risk. To manage this risk, the insurer can transfer a portion of that risk to another insurance company, known as a reinsurer. This process is called facultative reinsurance if specific risks are reinsured individually.

Reinsurance provides several benefits to primary insurers. Firstly, it increases their capacity to underwrite larger risks, allowing them to offer coverage for more significant assets or liabilities than they could handle on their own. Secondly, it helps stabilize underwriting results by protecting against catastrophic losses, such as those caused by natural disasters or major accidents. This financial protection ensures the insurer's solvency and its ability to meet its obligations to policyholders.

There are two main types of reinsurance: treaty reinsurance and facultative reinsurance. Treaty reinsurance involves an agreement where the reinsurer automatically accepts a predetermined portion of all risks within a defined class or portfolio of business. Facultative reinsurance, on the other hand, is negotiated on a risk-by-risk basis, giving the ceding company (the primary insurer) and the reinsurer more flexibility but also requiring more individual assessment.

The global reinsurance market plays a vital role in the financial stability of the insurance sector worldwide. It allows insurers to operate more confidently, knowing they have a safety net for unforeseen events.