reinsurance definition insurance
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- ( Insurance : Reinsurance ) Reinsurance is insurance protection taken out by an insurer to limit its exposure to losses on an original insurance contract. A property insurer may not be able to buy reinsurance to protect its own bottom line unless it keeps its potential maximum losses under a certain level.
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Gross premiums written Insurance companies often purchase reinsurance to protect themselves against the risk of a loss above a certain threshold; the cost of reinsurance (reinsurance premiums) is deducted from gross premiums written to arrive at net premiums written.
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Definition In property and liability coverage, the combining of several locations or operations under a single policy for the same insured or insureds. The term may also be used in the case of construction wrap-ups. In either case, underlying policies or certificates of insurance are issued to insureds under the policy as evidence of coverage under the master policy. Suggest an improvement or addition to the Insurance and Risk Management Glossary.
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Reinsurance Treaty reinsurance, on the other hand, is written to cover a particular class of policies issued by the reinsured. Examples of classes covered by treaty reinsurance are all property insurance policies or all casualty insurance policies written by the reinsured.
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coinsurance 1 : joint assumption of risk (as by two underwriters) with another. 2 : insurance (as fire insurance) in which the insured is obligated to maintain coverage on a risk at a stipulated percentage of its total value or in the event of loss suffer a penalty in proportion to the deficiency.
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Career Story: Reinsurance Underwriter Job Title: Treaty Reinsurance Underwriter. Type of Company: Large global provider of insurance and reinsurance products. Reinsurance is insurance for insurance companies and is a way of spreading risk between a number of companies.Education: BA, Business Administration, Marquette University. Previous Experience: I have worked as a primary casualty underwriter and a facultative reinsurance underwriter.Job Tasks: I make decisions on when to accept and how to price reinsurance transactions. An example of what I mean would be what typically happens when someone insures a large building.einsurance is insurance for insurance companies and is a way of spreading risk between a number of companies.
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Definition facultative reinsurance. A form of reinsurance whereby each exposure the ceding company wishes to reinsure is offered to the reinsurer and is contained in a single transaction. The submission, acceptance, and resulting agreement is required on each individual risk that the ceding company seeks to reinsure.
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Captive Insurance Companies The proposed revisions are currently focused on captive reinsurance transactions for XXX/AXXX, variable annuity and long-term care business. Background: A captive is an insurance company created and wholly owned by one or more non-insurance companies to insure the risks of its owner (or owners).
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Retroactive Reinsurance Retroactive Reinsurance. Tough capital market conditions all over the world present the insurance industry with new challenges – realising opportunities means thinking outside the box. With investment returns remaining low, asset-liability management has come under considerable pressure.
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- In the wake of Hurricanes Katrina and Rita, insurers and reinsurers--particularly those based in Bermuda--are plunging into the capital markets with equity and debt offerings, raising funds to shore up battered balance sheets as they head into the January reinsurance renewal season.
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- •Gain Underwriting and Claims Assistance •Obtain Relief for Catastrophic Storm Event What is Reinsurance? Insurance • Contract between company and individual or entity • Insurer deals with policyholder • Subject matter: Property, Person, Benefit or Legal Liability • Highly regulated • Many small claims constitute bulk of reserves and payments • Fast loss development Reinsurance • Contract between two companies; sophisticated purchasers • Reinsurer deals with cedent • Subject matter: Defined portion of insurer’s contractual liability • Not highly regulated • Few large claims constitute bulk of reserves and payments
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- Word Origin and History for mews Expand n. stables grouped around an open yard, 1630s, from Mewes, name of the royal stables at Charing Cross, built 1534 on the site of the former royal mews (attested from late 14c.), where the king's hawks were kept (see mew (n.2)).
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Renewal and Reinstatement Provisions in a Health Insurance Policy Another of the statutorily required provisions in individual health insurance policies is the Reinstatement provision. This addresses what you can do if your policy lapses because you did not pay your premium when due or within the grace period. A typical provision.his wording makes it clear that the insurance company may only refuse to renew on a policy anniversary (or, if applicable, on the reinstatement anniversary), and that any refusal to renew will not negatively impact any claims that originated before the termination date of the policy. Reinstatement. (Typical wording*):
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- Definition of coinsurance. 1  1 : joint assumption of risk (as by two underwriters) with another. 2  2 : insurance (as fire insurance) in which the insured is obligated to maintain coverage on a risk at a stipulated percentage of its total value or in the event of loss suffer a penalty in proportion to the deficiency.
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List of HIV-positive people AIDS is a pandemic. In 2007, an estimated 33.2 million people lived with the disease worldwide, and it killed an estimated 2.1 million people, including 330,000 children. Over three-quarters of these deaths occurred in sub-Saharan Africa.
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Munich Re Munich Re provides reinsurance cover for life, health, casualty, transport, aviation, space, fire and engineering business. In 2014, gross premiums written in the reinsurance segment amounted to around €26.8bn.
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- reinsurance practices. Two main types of treaties exist—pro rata and excess-of-loss treaties. In the former, all premiums and losses may be divided according to stated percentages. In the latter, the originating insurer accepts the risk of loss up to a stated amount, and above this amount the reinsurers divide any losses.
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Definition coinsurance provision. (1) A property insurance provision that penalizes the insured's loss recovery if the limit of insurance purchased by the insured is not equal to or greater than a specified percentage (commonly 80 percent) of the value of the insured property.
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coinsurance Legal Definition of coinsurance. 1  1 : joint assumption of risk (as by two underwriters) with another. 2  2 : insurance (as fire insurance) in which the insured is obligated to maintain coverage on a risk at a stipulated percentage of its total value or in the event of loss to suffer a penalty in proportion to the deficiency.
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- DEFINITION of 'Retrocession'. 1. The practice of one reinsurance company essentially insuring another reinsurance company by accepting business that the other company had agreed to underwrite. 2.The voluntary act of returning ceded property from one group to another.Retrocession can also be the result of a request to have property returned but, by definition, is not the result of a forced transaction.3. The process of differentiating or diversifying assets by consolidating and then subdividing them amongst a number of stakeholders.etrocession can also be the result of a request to have property returned but, by definition, is not the result of a forced transaction. 3. The process of differentiating or diversifying assets by consolidating and then subdividing them amongst a number of stakeholders.
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- BREAKING DOWN 'Reinsurance'. Overall, the reinsurance company receives pieces of a larger potential obligation in exchange for some of the money the original insurer received to accept the obligation. The party that diversifies its insurance portfolio is known as the ceding party.
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- Authorized Reinsurer – A reinsurer which is licensed or accredited in the ceding company’s state of domicile. A direct writing insurance company will receive full statutory reserve credit for reserves ceded to an authorized reinsurer.
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- The intent of reinsurance is for an insurance company to reduce the risks associated with underwritten policies by spreading risks across alternative institutions. Also known as insurance for insurers or stop-loss insurance.
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Unearned Reinsurance Premium A premium paid on a reinsurance policy before it is due. For example, one may pay six months' worth of premiums in January instead of paying each month from January to June.If the policyholder cancels before February, the reinsurer should refund the premiums March, April, May and June. premium paid on a reinsurance policy before it is due. For example, one may pay six months' worth of premiums in January instead of paying each month from January to June.
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- Reinsurance is a process whereby one entity takes on all or part of the risk covered under a policy issued by an insurance company in consideration of a premium payment.
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Internal Revenue Bulletin: 2013-22 Indemnity reinsurance  means an agreement between one or more reinsuring companies and a covered entity under which ( 1 ) the reinsuring company agrees to accept , and to indemnify the issuing company for , all or part of the risk of loss under policies specified in the agreement , and ( 2 ) the covered entity retains its liability to , and its ...