reinsureerimisega

Reinsureerimisega is a financial process where an insurance company transfers a portion of its risk to another insurance company, known as a reinsurer. This practice is crucial for insurance companies to manage their exposure to large or catastrophic losses. By reinsuring, the primary insurer can reduce the amount of capital it needs to hold, thereby improving its solvency and its capacity to underwrite more policies. It also allows insurers to spread their risk geographically or across different lines of business.

There are several types of reinsurance. Treaty reinsurance involves the reinsurer automatically accepting a defined portion of all risks underwritten by the primary insurer for a specific 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 treaties. Proportional reinsurance, such as quota share or surplus share, involves the reinsurer sharing a predetermined percentage of both premiums and losses with the primary insurer. Non-proportional reinsurance, like excess of loss, means the reinsurer pays only when losses exceed a certain threshold.

Reinsureerimisega benefits not only the primary insurer but also the insurance market as a whole. It enhances the stability of the insurance sector by preventing a single large event from bankrupting a company. This, in turn, ensures that individuals and businesses can obtain the insurance coverage they need. The cost of reinsurance is paid by the primary insurer to the reinsurer, and this cost is factored into the premiums charged to policyholders.