Återförsäkrande

Återförsäkrande is the Swedish term for reinsurance. It is a risk management strategy used by insurance companies to transfer a portion of their own risk to another insurance company, known as a reinsurer. This process allows insurers to protect themselves from catastrophic losses, manage their capital more effectively, and increase their capacity to underwrite larger risks.

There are several types of reinsurance agreements. Treaty reinsurance involves the automatic cession of a specified portion of all risks within a defined class of business from the ceding insurer to the reinsurer. Facultative reinsurance, on the other hand, applies to individual risks and is negotiated separately for each policy. Quota share reinsurance is a proportional treaty where the reinsurer assumes a fixed percentage of every risk written by the ceding insurer. Excess of loss reinsurance covers losses that exceed a predetermined retention level for the ceding insurer.

The primary purpose of återförsäkrande is to stabilize an insurer's financial results, prevent insolvency due to large claims, and enable growth by allowing them to underwrite policies they might otherwise not be able to handle. It also plays a crucial role in the global insurance market by distributing risk across a wider base. Reinsurers themselves may also purchase reinsurance to manage their own exposure. The development of the reinsurance market has been instrumental in the evolution of modern insurance.