Återförsäkringsskyddet

Återförsäkringsskyddet, often translated as reinsurance protection, refers to the coverage a primary insurance company obtains from a reinsurer. This mechanism allows insurers to transfer a portion of their risk to another party, thereby reducing their potential financial exposure from large or frequent claims.

When an insurance company writes policies, it assumes the risk of paying out claims. If a single large claim, or a series of smaller claims, exceeds the insurer's capacity to pay, it could face significant financial difficulties. Reinsurance acts as a safety net, providing financial stability and solvency for the primary insurer.

There are various forms of reinsurance, including treaty reinsurance and facultative reinsurance. Treaty reinsurance covers a specific class of business for a defined period, while facultative reinsurance is negotiated on a case-by-case basis for individual risks. The terms and conditions of the reinsurance contract, including the premium paid by the primary insurer and the coverage provided by the reinsurer, are collectively known as the återförsäkringsskyddet.

By securing adequate reinsurance protection, insurers can underwrite more business, offer broader coverage to their policyholders, and absorb unexpected losses more effectively. This ultimately contributes to the stability of the insurance market and the protection of policyholders.