reinsure
Insure the insurer
To reinsure is for an insurance company to transfer part of its risk to another insurer.
When a company writes a large policy, it may reinsure a portion with other companies to limit its exposure to catastrophic loss.
The practice spreads risk across the industry: The carrier reinsured 40% of its hurricane coverage with three European firms.
Return of ceded territory
- surplusAmount exceeding requirement
- facultativeCapable but not obligated
- treatyBinding pact between nations
- proportionalScaled to match another
slip · commutation · fronting · aggregate · sidecar · inuring
Protection against financial loss
- coverageExtent of inclusion
- protectionGuarding against harm
- claimsStatements of truth
- recoveryRegaining what was lost
limit · deductible · reinstatement · occurrence · sublimit · exclusion · conditions · trigger
Financial risk analyst
- premiumsPayments for insurance coverage
- underwriterOne who assumes financial risk
- capacityMaximum amount containable
- retentionContinued holding or possession
solvency · actuarial · ratios · subscription · pricing · exposure · reserve · modeling
Formally surrender possession
- transferMove between locations
- spreadTo distribute widely
- diversifyExpand into new areas
- portfolioCollected works or assets
liability · exposure · catastrophe · accumulation · correlation · systemic · concentration · man-made
Wealth used for investment
- solvencyCapacity to pay debts
- capacityMaximum amount containable
- reserveSupply kept back
- collateralSecurity for debt
trust · finite · structured · securitization
retrocession
Return of ceded territory
- surplusAmount exceeding requirement
- facultativeCapable but not obligated
- treatyBinding pact between nations
proportional · slip · commutation · fronting · aggregate · sidecar · inuring
indemnity
Protection against financial loss
- coverageExtent of inclusion
- protectionGuarding against harm
- claimsStatements of truth
recovery · limit · deductible · reinstatement · occurrence · sublimit · exclusion · conditions · trigger · cut-through
actuary
Financial risk analyst
- premiumsPayments for insurance coverage
- underwriterOne who assumes financial risk
- capacityMaximum amount containable
retention · solvency · actuarial · ratios · subscription · pricing · exposure · reserve · modeling
cede
Formally surrender possession
portfolio · liability · exposure · catastrophe · accumulation · correlation · systemic · concentration · man-made · terrorism
capital
Wealth used for investment
collateral · trust · finite · structured · securitization