Reinsurance

Plain English Definition: Insurance for insurance companies to manage risk.

What Reinsurance really means for someone with an insurance policy

Reinsurance allows insurers to spread risks by purchasing coverage from other insurers.

Reinsurance Real World Examples

• An insurer buys reinsurance to cover catastrophic events like hurricanes.
• Reinsurance helps stabilize the insurance market during large-scale disasters.
• It enables insurers to offer higher policy limits.