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.
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.