Reinsurance company

Reinsurance is the practice of one or more insurers assuming another insurance company's risk portfolio in an effort to balance the insurance market.

What is a reinsurance company?

Issue: Reinsurance, often referred to as insurance for insurance companies, is a contract between a reinsurer and an insurer. In this contract, the insurance company—the cedent—transfers risk to the reinsurance company, and the latter assumes all or part of one or more insurance policies issued by the cedent.

Who is the biggest reinsurance company?

There is no fundamental difference between a contract of insurance and a contract of reinsurance, save for the fact that the policyholder of a contract of reinsurance (the cedant) is itself an insurer and has insured the relevant risks.

What is the difference between an insurance company and a reinsurance company?

Reinsurance is also known as insurance for insurers or stop-loss insurance. Reinsurance is the practice whereby insurers transfer portions of their risk portfolios to other parties by some form of agreement to reduce the likelihood of paying a large obligation resulting from an insurance claim.