l0grisk intelligence · english

// definition

Reinsurance

Insurance for an insurer

fraisrevu il y a 0 j
Macro & central banks

Short definition

A contract through which an insurer transfers part of its premiums and losses to another institution. The policyholder keeps the same insurer; the reinsurance treaty redistributes large or correlated losses between professional counterparties.

risk atlas

Knowledge map

Intuition

A reinsurer gives an insurer another balance sheet with which to absorb severe losses. It does not replace the insurer in the customer’s policy.

Why it matters now

Natural catastrophes can hit many policies at once, making reinsurance and its ultimate backstops central to insurability.

Related analyses

Primary sources