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What Is Reinsurance Definition And Meaning

What Is Reinsurance

Reinsurance Defintion And Meaning

Re insurance is when an insurance company will guard themselves against the risk of loss. Reinsurance in simpler terms is the insurance that is taken out by an insurance company. Since insurance companies provide protection against the risk of loss, insurance is a very risky business, and it is important that an insurance company has its own protection in place to avoid bankruptcy.

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Through a reinsurance scheme, an insurance company is able to bring together or ‘pool’ its insurance policies and then divide up the risk among a number of insurance providers so that in the event that a large loss occurs this will be divided up throughout a number of firms, thereby saving the one insurance company from large losses.

Insurance Law And Practice - ICSI
What Is Reinsurance Definition And Meaning What Is Reinsurance Definition And Meaning Reviewed by Ikpokolo Francis on Tuesday, April 25, 2017 Rating: 5

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