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,
There are two main types of reinsurance: treaty reinsurance and facultative reinsurance. Treaty reinsurance involves an
The global reinsurance market plays a vital role in the financial stability of the insurance sector worldwide.