Definition, Meaning & Synonyms

reinsure

verb

/ˌriːɪnˈʃʊr/

Definition

To insure again, particularly in the context of insurance companies covering their own risks by transferring part of their risk to another insurer.

Examples

The insurance company decided to reinsure part of its portfolio to mitigate risk.
In case of a massive claim, they chose to reinsure with a more stable provider.

Meaning

Reinsuring is the process by which an insurance company purchases insurance coverage from another insurance company to protect itself from large losses.