reinsurer
Insurer's safety net
A reinsurer is a company that insures insurance companies.
When an insurer takes on policies with risks too large to bear alone, it transfers portions of that risk to a reinsurer in exchange for a share of the premiums.
This arrangement protects insurers from catastrophic losses—natural disasters, mass litigation, or other events that could overwhelm their reserves.
Binding pact between nations
- facultativeCapable but not obligated
- retrocessionReturn of ceded territory
- cedingFormally surrendering territory or rights
- retentionContinued holding or possession
layering · aggregate · stop-loss · portfolio · claims · reserves · premiums · capacity
Wealth used for investment
- solvencyCapacity to pay debts
- profitabilityCapacity to generate gain
- reservesResources held back
- actuarialOf risk calculation
securitization · sidecar · collateralized · surplus · counterparty · float · commutation · earnings
Devastating, large-scale misfortune
London insurance market
- syndicateCombined group pursuing shared interest
- BermudaNorth Atlantic island group
- brokerTransaction intermediary for hire
- intermediaryAgent linking two parties
placement · renewal · submission · slip
State of being unprotected
- accumulationCollected mass over time
- modelingSimulating or demonstrating form
- pricingEstablishing monetary amounts charged
- correlationStatistical relationship measure
treaty
Binding pact between nations
- facultativeCapable but not obligated
- retrocessionReturn of ceded territory
- cedingFormally surrendering territory or rights
retention · layering · aggregate · stop-loss · portfolio · claims · reserves · premiums · capacity · indemnity
capital
Wealth used for investment
- solvencyCapacity to pay debts
- profitabilityCapacity to generate gain
- reservesResources held back
actuarial · securitization · sidecar · collateralized · surplus · counterparty · float · commutation · earnings
catastrophe
Devastating, large-scale misfortune
- propertySomething owned or inherent
- casualtyPerson harmed in disaster
- liabilityLegal or financial obligation
life · health · marine · aviation · cyber · terrorism · pandemic
Lloyd's
London insurance market
- syndicateCombined group pursuing shared interest
- BermudaNorth Atlantic island group
- brokerTransaction intermediary for hire
intermediary · placement · renewal · submission · slip
exposure
State of being unprotected
- accumulationCollected mass over time
- modelingSimulating or demonstrating form
- pricingEstablishing monetary amounts charged
Arch
Landmark name prefix
- insurancecoverage, underwriting, premium, claims, policyholder
- Reinsuranceretrocession, retention, cession, proportional, facultative
- war reinsurancecession, retrocession, political violence, hostile acts, conflict zones
- financial overseersauditor, comptroller, bank examiner, compliance officer, internal auditor
- insurance partiesinsured, policyholder, beneficiary, underwriter, agent