Insurance a second time or again; renewed insurance.
A contract by which an insurer is insured wholly or in part against the risk he has incurred in insuring somebody else. See Reassurance.
A transaction between two insurance companies in which one company - the ceding company - transfers some of its insurance risk to another company - the reinsurer. The reinsurer agrees to reimburse the ceding company for covered losses claimed under the policies that have been reinsured according to the terms of the reinsurance agreement. See also ceding company and reinsurer. TO TOP
Reinsurance is the process by which an insurance company cedes some of its business to another insurance company. The expressions reinsurance inwards and reinsurance outwards are sometimes used to qualify the direction of the risk transfer: the former is the acceptance of risks, the latter the placing of risks under a reinsurance contract. Under EU regulation, the use of reinsurance lowers the required minimum margin of solvency and boosts solvency, with limitations.
The passing of al or part of an insurance risk that has been covered by an insurer to another insurer in return for a premium.
An arrangement in which an insurer passes risk and obligations to another insurer.
insurance for third-party payers to spread their risk for losses (claims paid) over a specified dollar amount.
( réassurance) The placing of part of the insurance by an insurance company with another insurance company called a reinsurer. Thus where an insurance company has a larger portion of the particular risk than they feel wise to carry, they may buy insurance from another insurance company thus "reinsuring" part of that risk. It is designed to limit the original insurer's liability on any one risk or class of risk.
The transaction whereby the assuming insurer, for consideration, agrees to indemnify the CEDING COMPANY against all, or a part, of the loss which the latter may sustain under the policy or policies which it has issued.
Risk Management Speciality
The spreading of risk and division of client premiums among insurance companies allowing the sharing of the burden of a large risk.
A method of transferring some of an insurer's risk to other parties. In the case of Federal crop insurance, USDA's Risk Management Agency shares the risk of loss with each private insurance company delivering policies to producers. Private reinsurance also exists, in which case, a private reinsurer assumes responsibility for a share of the risk in return for a share of the premiums.
An agreement between insurance companies under which one accepts all or part of a risk or loss of the other. Most primary companies insure only part of the risk on any given policy. The amount varies among carriers. The remainder of the policy limits is covered by reinsurance entities. The less primary risk that a company insures, the more premium it has to pay to the reinsurer to cover the remaining policy limits. In general, smaller companies are able to cover only a relatively small proportion of the liability limit. This results in large premium payments to reinsurers. Larger companies can safely cover a large proportion, thus reducing the payments they must cede to reinsurers, which indirectly reduces the cost of insurance to their policyholders.
An agreement between two insurance companies to share the risk taken on by one company for insurance policies where the risk of loss is substantial.
Under this system, one insurer accepts insurance from another insurer. There are various types of reinsurance, as there are specialist reinsurance companies and brokers.
An agreement by which one insurance company transfers to another carrier part or all of its risk of loss under its policies by means of a separate contract or treaty with another insurance company. The company providing reinsurance protection is the “reinsuring company” or “reinsurer.” The one receiving reinsurance protection is the “ceding company.” Under the common form of reinsurance known as excess reinsurance, the reinsurer covers losses exceeding a certain limit specified in advance, and then only for the excess of the amount of the loss over the fixed limit. There are also quota share (pro rata) and stop loss (excess) types as well as facultative, which is specific for a given risk and may be of any type. The liability retained by the ceding company is known as its “retention.
A contract whereby an insurance company will itself buy insurance from a second company (the reinsurer) to cover part of the risk the first company has insured. The amount of risk a company will reinsure varies from carrier to carrier.
The acceptance by one insurance company of a portion of a risk underwritten by another company. In a type of reinsurance called facultative, the reinsurer retains the right to reject any specific risk presented by the reinsured.
The contract or treaty of an Insurance Company with often a larger Insurance Company to provide coverage against a substantial risk of loss.
The sharing of insurance policies among multiple insurers, to reduce the risk for each.
To transfer in whole or in part, a risk or contingent liability already covered under an existing contract from one insurer (the ceding company) to another (the re-insurer).
Insurance for insurers: to pass on to re-insurers risks that they can not absorb themselves.... more on: Reinsurance
Process by which an insurance company obtains insurance on its insurance claims with other insurers in order to spread the risk.
the sharing of large risks among two or more insurers.
The transfer of some or all of an insurance risk to another insurer. The company transferring the risk is called the "ceding company"; the company receiving the risk is called the "assuming company" or "reinsurer."
The act of an insurer transferring a portion of the risk to other insurers. The original insurer is sole insurer for a portion of the risk and shares the risk in the excess amount with the reinsurers. The first portion of the loss risk retained by the ceding company as its sole liability is called primary liability.
To insure again by transferring to another insurance company all or part of al assumed liability, thus spreading the loss that any one company has to carry.
An insurance arrangement whereby the MCO or provider is reimbursed by a third party for costs exceeding a pre-set limit, usually an annual maximum.
A contractual relationship between two insurance companies under which one insurer assumes a portion of the risk of the insurance policy written by the other.
A contractual arrangement whereby a reinsurer agrees to assume a portion of the risk underwritten by a stop-loss carrier or insurance company. Insurance for the insurance company. Stop-loss coverage is not reinsurance because stop-loss coverage is issued to an employer group and not a stop-loss carrier or insurance company.
sharing the risk by insurance companies; part or all of the insurer's risk is assumed by other companies in return for part of the premium paid by the insured; "reinsurance enables a client to get coverage that would be too great for any one company to assume"
Contractual assumption of a portion of one insurer's risk by one or more insurers. Stop-loss insurance is a form of reinsurance, in that an insurance carrier assumes coverage when claims exceed a specified dollar amount over a set period of time. There are 2 types of stop-loss insurance: (a) Aggregate, where insurance payments commence when aggregate or total claims exceed a set figure within a specified period of time, and (b) Specific, where insurance payments commence when a single large claim exceeds a set figure within a specified period of time.
An agreement between two or more insurance companies by which the risk of loss is proportioned. Thus the risk of loss is spread and a disproportionately large loss under a single policy does not fall on one insurance company. Acceptance by an insurer, called a reinsurer, of all or part of the risk of loss of another insurance company. An insurance company issuing an automobile liability policy, with a limit of $100,000 per accident may reinsure its liability in excess of $10,000. A fire insurance company which issues a large policy generally reinsures a portion of the risk with one or several other companies.
Reinsurance is an insurance which provides coverage for catastrophic medical charges incurred by a plan member. The three types of medical reinsurance are HMO reinsurance, Workers Compensation reinsurance, and CHAMPUS/Tricare reinsurance. Reinsurance applies to re-insuring an insurance policy.
Assumption by one or more insurers of a portion of the risk accepted by another insurer who has contracted for the entire coverage. It is also called risk control insurance or stop-loss insurance.
The very fundamental principle of spreading of the risk is actually practiced by the insurance companies by reinsuring the risks that they have insured. This is done to protect company from the heavy losses in case of big tragedy. This is generally considered for high value items for example satellites, ships etc.
(or Stop-loss Insurance) - Coverage purchased from an insurance company by an HMO, another insurance company or employer group which self-funds their health benefits plan to protect itself against losses beyond a pre-determined amount.
Insurance of risks taken by an insurance company
The transfer of part of the insurance risk - along with part of the premium - to another insurer or insurers.
Acceptance by one insurer (the reinsurer) of all or part of the risk of loss underwritten by another insurer (the ceding insurer).
Insurance purchased by an HMO, insurance company, or self-funded employer from another insurance company to protect itself against all or part of the losses that may be incurred in the process of honoring the claims of its participating providers, policy holders, or employees and covered dependents.
The transfer of part or whole of the risk by the original insurance company to one or more reinsurers.
Companies place a limit on the amount of insurance they will risk on a single life and, therefore, when issuing policies for larger amounts than their own limit, they reinsure the excess over that limit with some other company.
Separate insurance purchased by a health benefit plan from a third party to protect itself against losses that are not easily managed or are unpredictable; it limits the losses of the health benefit plan if expenses exceed the revenues from capitation payments.
The practice of insurance companies of protecting themselves against excessive loss, usually accomplished by reinsuring with other companies that portion of the assumed liability that exceeds their net line.
In a contract of reinsurance, one insurance company agrees to indemnify another insurance company in whole or in part against risks that the first company has assumed. The original contract of insurance and the reinsurance contract are distinct contracts.
See Stop/Loss Insurance.
Reinsurance is the concept of one insurance company being insured by another. There exists a primary insurer and then a secondary insurer to guarantee that a business can cover its claims in case of a crisis.
An arrangement by which one insurer transfers all or a portion of its risk under a policy or group of policies to another insurer (reinsurer). Thus reinsurance is insurance purchased by an insurance company from another insurer, to reduce risk for the original insurer.
Insurance for insurers. A contract transferring all or part of a risk or liability already covered under an existing contract. Allows an insurer to protect itself against part or all of the losses incurred when honoring all the claims of its members or subscribers. Also referred to as "stop loss."
A type of insurance that one insurance company (the ceding company) purchases from another insurance company (the reinsurer), in order to transfer risks on insurance policies that the ceding company issued.
is an agreement through which EDC assures a surety company that if a loss occurs under a surety bond issued on behalf of the exporter, that EDC will cover a portion or all of the losses.
A transaction in which a reinsurer (assuming entity), for a consideration (premium), assumes some or all of a risk undertaken originally by another insurer (ceding entity). There are two major types of reinsurance: treaty that is based on a block of the ceding company's business and facultative which is based on individual risk.
A reinsurer assumes part of a risk originally taken by the insurer, which is called the primary company.
Insurance coverage taken out by a health plan or self-funded employer to provide protection from losses resulting from claims greater than a specific dollar amount per member per year or for total plan expenditures per year. It is purchased from insurance companies specializing in underwriting specific risks for a stipulated premium. Typical reinsurance risk coverages are; 1) individual stop-loss, 2) aggregate stop-loss, 3) out-of-area, and 4) insolvency protection.
A type of insurance protection, such as stop loss, to cover extraordinary losses.
Assumption by one insurance company of all or part of a risk undertaken by another insurance company.
A contract of indemnity against liability by which the insurance company procures another insurance to insure it against loss or liability by reason of the original insurance. Insurance by one insurance company of all or part of a risk accepted by it with another insurance company which agrees to reimburse the insurance company for the portion of the claim reinsured. The insurance company obtaining the reinsurance is called the "ceding insurance company;" the insurance company issuing the reinsurance is called the "reinsurer." A reinsurer may, in turn, seek reinsurance on some portion of the risk it has reinsured, a process known as "retrocession."
Insurance purchased by an HMO, insurance company or self-insured employer from another insurance company to protect against losses that may arise from honoring claims. Also called "risk-control" or "stop-loss" insurance.
The sharing of claims risk by more than one insurance company. Reinsuring occurs when a company determines that a claims risk is too large to carry and chooses to find a second company willing to accept a part of the business.
The purchase of insurance by insurance companies.
Insurance by the insurer with a third party against risks that the plan cannot easily manage or predict (for example, catastrophic care).
Insurance insuring an insurer. When an insurance company has issued a policy and does not want to be fully exposed to loss for the full amount of the policy, the company may purchase reinsurance from another insurance company to insure the first company against a part or all of the loss which the first company may have to pay under its policy.
The taking out of insurance to protect against risks to which the insurance company is not prepared to be exposed.
The practice whereby one party called the Reinsurer in consideration of a premium paid to him agrees to indemnify another party, called the Reinsured, for part or all of the liability assumed by the latter party under a policy or policies of insurance which it has issued. The reinsured may be referred to as the Original or Primary Insurer, or Direct Writing Company, or the Ceding Company.
A system of passing part of a risk from the original insurance company to a second insurance company known as a reinsurer. This system is designed to limit the original insurer's liability on any one risk.
A contract by which an insurer procures a third person to insure him against loss or liability by reason of the original insurance; a contract that one insurer makes with another to protect the latter from a risk already assumed.
1)The transaction whereby an insurance company(the reinsurer), for a consideration, agrees to endmnify another insurance company known as the ceding company (the reinsured) against all or part of a loss which the latter may sustain under a policy or policies it has issued. 2)When referred to as "a reinsurance," the term means the relationship between reinsured(s) and reinsurer(s).
The practice whereby one insurance company transfers part or all of the risk it has accepted to another insurance company (the reinsurer).
The practice whereby one insurer transfers part or all of the risk it has accepted to another insurer (the reinsurer).
The sharing or spreading of a risk too large for one insurer by ceding part of the risk to another company or reinsurer. For example, most companies place a limit on the amount of insurance they will risk on a single life; therefore, when issuing policies for larger amounts than their own limit, they cede the excess over that limit with a reinsurance company for a portion of the premium.
An agreement whereby the original insurer arranges to pass on all or part of the risk to another insurer known as the reinsurer, in consideration of the premium paid to the reinsurer. The original insurer may be referred to as the primary insurer, the reinsured, or the ceding company. The amount of liability retained by the original insurer is commonly called the retention of net line
A contract which one insurer makes with another to protect the first insurer, wholly or partially, against loss or liability by reason of a risk under a separate and distinct contract as insurer of a third party. Reinsurance differs from coinsurance in that, in the case of reinsurance, only one insurer has a direct contractual relationship with the insured, and that insurer (commonly referred to as the "lead insurer") purchases reinsurance in order to lessen or spread the risk. The "lead insurer" will assume a risk up to a limit (the amount of which is referred to as the "retention") and any loss which exceeds this limit would be borne by the reinsurers. In the case of coinsurance, each coinsurer has a direct contractual relationship with the insured, and the risk is shared in agreed-upon proportions from the first dollar of loss.
a form of insurance that enables an insurer to be indemnified, or paid, for covered losses claimed under insurance policies it has issued.
Insurance provided by one insurance company to another; usually to the company writing the original policy.
Insurance for insurers. They pass on to reinsurers risks that they cannot absorb themselves.... more on Reinsurance
where an insurance company shares the risk on a particular policy or group of policies with another or several other companies.
Transfer of all or part of the risk assumed by an insurer under one or more insurances to another insurer, called the reinsurer.
The arrangement under which a part of the risk is transferred from the company originally issuing the policy (the insurer) to another insurance company known as the reinsurer.
Reinsurance is the cover insurance companies can purchase to protect themselves against large losses.
the acceptance by one or more insurers, called reinsurers or assuming companies, of a portion of the risk underwritten by another insurer that has contracted with an employer for the entire coverage.
A transaction in which a reinsurer (assuming enterprise), for a consideration (premium), assumes all or part of a risk undertaken originally by another insurer (ceding enterprise). However, the legal rights of the insured are not affected by the reinsurance transaction, and the insurance enterprise issuing the insurance contract remains liable to the insured for payment of policy benefits.
This is where an insurance company has insured a particular event (such as a policyholder dying), and takes out a policy for the same event with another insurance company. The idea is to limit the risk that the original insurance company is taking.
A situation where HARRP buys insurance to cover a portion of the risk it faces under the terms of the coverage agreement with the members.
Insurance bought by insurers. A reinsurer assumes part of the risk and part of the premium originally taken by the insurer, known as the primary company. Reinsurance effectively increases an insurer's capital and therefore its capacity to sell more coverage. The business is global and some of the largest reinsurers are based abroad. Reinsurers have their own reinsurers, called retrocessionaires. Reinsurers don't pay policyholder claims. Instead, they reimburse insurers for claims paid. (See Treaty reinsurance, Facultative reinsurance)
A form of insurance that insurance companies buy for their own protection.
A transaction between two insurance companies in which one company purchases insurance from the other to cover part or all of the risks that the first company does not wish to retain in full.
A system of passing part of a risk or liability from the original insurance company to another (called the reinsurer) at an agreed premium; designed to limit the original insurer's liability to any one risk.
is an agreement whereby an insurance company transfers part or all of its risk of loss under insurance policies it writes by means of a separate contract or treaty with a reinsurance company.
A means of sharing risk in the insurance business. Typically, the amount originally insured (usually by a private sector insurer) is totally or partially reinsured by an official (government) insurance agency. The private insurer might wish to keep the commercial component of the risk on its own books, while seeking reinsurance against political risks. Some large official agencies also provide reinsurance for smaller official agencies. Français: Réassurance Español: Reaseguro
Insurance used as protection against risks to which the insurance company is not exposed.
The transfer of part of an insurance risk to another insurer or insurers. Self-funded plans generally buy coverage to cover losses in excess of certain limits (also known as stop loss).
A system for sharing the hospital costs of high-risk groups between RHBOs as defined under Section 73BC of the National Health Act
Insurance an insurance company buys to transfer part of its risk to another company.
One of the following: A contract by which an insurer procures a third party to insure it against loss or liability by reason of such original insurance. The practice of an HMO or insurance company of purchasing insurance from another company to protect itself against part or all the losses incurred in the process of honoring the claims of policy-holders. Also referred to as "stop loss" or "risk control" insurance.
The business of insuring insurance companies. By "ceding" a portion of its business to a reinsurance company, an insurer spreads the risk of exposure to catastrophic loss.
The process of insurance companies insuring underwritten policies with other institutions in order to offset exposure.
Insurance effected by an insurer to provide protection against large claims and catastrophes which might damage the insurer s solvency position. There are specialist reinsurers which write only reinsurance business. Many DIRECT INSURERS also accept reinsurance business.
Laying off a primary risk to a secondary insurer.
replacement cost insurance savings element
the means by which an insurance company transfers (or "cedes") part of the risk to another company; basically, insurance for insurance companies. Reinsurance is generally used to further spread the risk when the limits or exposure are beyond the amount which the company wants to handle alone. Reinsurance may be placed on a FACULTATIVE or TREATY basis.
The acceptance by one or more insurers, called reinsurers, of a portion of the risk accepted by another insurer who has contracted for the entire coverage. Reinsurance can be treaty or facultative.
The transferring of a portion of the liability to other insurers. Example: Insurer A insures for $200,000, A insures for $100,000 and reinsures the "second" $100,000 through B insurer, The "first" $100,000 is called "primary liability."
Insurance placed by an underwriter in another company to reduce the amount of the risk his or her company has assumed.
In effect, insurance that an insurance company buys for its own protection. The risk of loss is spread so a disproportionately large loss under a single policy doesn't fall on one company. Reinsurance enables an insurance company to expand its capacity; stabilize its underwriting results; finance its expanding volume; secure catastrophe protection against shock losses; withdraw from a line of business or a geographical area within a specified time period.
Reinsurance is a means by which an insurance company can protect itself against the risk of losses with other insurance companies. Individuals and corporations obtain insurance policies to provide protection for various risks (hurricanes, earthquakes, lawsuits, collisions, sickness and death, etc.). Reinsurers, in turn, provide insurance to insurance companies.