Definition, Meaning & Synonyms
reinsurance
noun
/ˌriːɪnˈʃʊrəns/
Definition
Reinsurance is a process where an insurance company purchases insurance for itself from another insurance company.
Examples
- The insurance company used reinsurance to protect itself from significant claims.
- After a natural disaster, many insurers turned to reinsurance to cover their liabilities.
Meaning
It helps insurance companies manage risk by sharing potential losses with others.
Synonyms
- Insurance
- Backstop
- Risk transfer
