reinsurers
Insurers' backup insurers
Reinsurers are insurance companies that insure other insurance companies.
When an insurer takes on policies with risks too large to bear alone, it transfers some of that risk to a reinsurer: After the hurricane season, the reinsurers faced massive claims.
This spreading of risk helps stabilize the insurance industry against catastrophic losses.
Risk evaluation and acceptance
- cedingFormally surrendering territory or rights
- retrocessionReturn of ceded territory
- treatyBinding pact between nations
- facultativeCapable but not obligated
renewals · risk assessment · actuarial · stop-loss · indemnity · retention · underwriters · capacity
Capacity to pay debts
- premiumsPayments for insurance coverage
- capital managementOverseeing financial resources strategically
- surplusAmount exceeding requirement
- capitalizationUsing big letters properly
reserves · liquidity · ratings · credit risk · exposure · profitability · balance sheet · sidecars
Barrier behind target area
- bufferProtective intermediate space
- safeguardPrecaution against harm
- stabilizationProcess of becoming steady
- diversificationExpanding into varied areas
Devastating, large-scale misfortune
- liabilityLegal or financial obligation
- propertySomething owned or inherent
- casualtyPerson harmed in disaster
- marineRelating to the sea
aviation · natural disasters · hurricane · earthquake · flood · wildfire · pandemic · terrorism
London insurance market
- Berkshire HathawayAmerican multinational holding company
- brokersTransaction intermediaries
- syndicatesOrganized groups sharing enterprise
- rating agenciesFirms assessing creditworthiness
underwriting
Risk evaluation and acceptance
- cedingFormally surrendering territory or rights
- retrocessionReturn of ceded territory
- treatyBinding pact between nations
facultative · renewals · risk assessment · actuarial · stop-loss · indemnity · retention · underwriters · capacity · pricing
solvency
Capacity to pay debts
- premiumsPayments for insurance coverage
- capital managementOverseeing financial resources strategically
- surplusAmount exceeding requirement
capitalization · reserves · liquidity · ratings · credit risk · exposure · profitability · balance sheet · sidecars
backstop
Barrier behind target area
- bufferProtective intermediate space
- safeguardPrecaution against harm
- stabilizationProcess of becoming steady
catastrophe
Devastating, large-scale misfortune
- liabilityLegal or financial obligation
- propertySomething owned or inherent
- casualtyPerson harmed in disaster
marine · aviation · natural disasters · hurricane · earthquake · flood · wildfire · pandemic · terrorism · cyber risk
Lloyd's
London insurance market
- Berkshire HathawayAmerican multinational holding company
- brokersTransaction intermediaries
- syndicatesOrganized groups sharing enterprise
- insurancecoverage, underwriting, premium, claims, policyholder
- insurerslife insurers, auto insurers, home insurers
- war reinsurancecession, retrocession, political violence, hostile acts, conflict zones
- insurance peopleunderwriters, actuaries, claims adjusters