taastkindlustuses

Taastkindlustus, known in English as reinsurance, is a risk‑management practice in which insurance companies transfer portions of the risks they underwrite to other insurers or reinsurers. By ceding parts of their portfolios, primary insurers are able to reduce the volatility of claims, free up capital, and increase underwriting capacity. The term is widely used in Estonian, and the practice is integral to global insurance markets, ensuring financial stability in the face of large or catastrophic losses.

In practice, primary insurers negotiate reinsurance treaties that may be either facultative—covering individual risks—or treaty, covering a whole book or class of business. Common forms include quota share, where proportions of premiums and losses are shared, and excess‑of‑loss, protecting the insurer above a specified threshold. Reinsurers analyze aggregate losses, apply catastrophe models, and set premiums to cover expected claims plus profit and administrative costs. The arrangement benefits both parties: the insurer gains reduced exposure, while the reinsurer gains diversified portfolios and a share of the profiteering.

Regulation of taastkindlustus is overseen by national supervisory authorities, with Estonia following directives from the European Insurance and Occupational Pensions Authority and adopting Solvency II principles. Reinsurers must maintain adequate capital buffers, publish audited financial statements, and submit to stress testing. Major global reinsurers such as Munich Re, Swiss Re, and Hannover Re play a prominent role in the Estonian market through both subsidiary and subsidiary‑like structures. Recent trends emphasize digital data analytics, cyber‑risk coverage, and climate‑related catastrophe modeling, which are reshaping underwriting practices and treaty design across the reinsurance industry.