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Reinsurance - Meaning, Definition & English Examples

Reinsurance is a process where insurance companies transfer portions of their risk portfolios to other insurers to reduce the likelihood of large claim payouts. It helps spread financial risk.

reinsurance

/ˌriːɪnˈʃʊrəns/ /ˌriːɪnˈʃʊərəns/

Definition:

Insurance purchased by insurers to mitigate risk and spread liability.

Synonyms:

risk transfer, insurance coverage, underwriting

Part of Speech:

noun

Antonyms:

self-insurance, uninsurance

Common Collocations:

reinsurance contract, reinsurance market, reinsurance premium

Derivatives:

reinsure, reinsurer

Usage Tips:

Use "reinsurance" when discussing risk management strategies among insurance companies.

Common Phrases:

reinsurance treaty, excess of loss reinsurance, facultative reinsurance

Etymology:

Derived from "re-" (again) + "insurance," originating in early 19th-century commerce.

Examples:

  • 1. The company bought reinsurance to cover catastrophic losses.
  • 2. Reinsurance helps insurers manage large claims more effectively.
  • 3. She works in the reinsurance department of a major firm.
  • 4. The treaty included a clause for proportional reinsurance.

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