// definition
Reinsurance
Insurance for an insurer
freshreviewed 3 days ago
Short definition
A contract through which an insurer transfers all or part of specified risks to a reinsurer in exchange for a premium. The cover and limits determine which losses are shared. The original insurer remains responsible to its policyholders, including if the reinsurer fails to pay.
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
- Aon and Blackstone: who sets the price of risk?Treaty participation, discounts, loss accumulation and continuity of capacity.
- When climate turns the state into a reinsurerHow France layers policyholder, insurer, CCR and state balance sheets.
Primary sources
- NAIC: ReinsuranceDefinition, transfer of risk and contractual scope of reinsurance.
- AXIS Syndicate 1686, 2025 accountsNote 21: liability retained when reinsurers fail to pay.
- French Insurance Code, Article L. 431-9CCR reinsurance and the French state guarantee.
- Cour des comptes, April 2026Treaty structure and financial sustainability of the French Cat Nat scheme.