Reinsurance Industry

Reinsurance is a form of insurance contract that protects insurance companies from risks relating to the policies they underwrite. Reinsurance firms contract with insurers to cover all or part of the cost of certain policies in exchange for a cash payment or a share of the premiums reinsured. Because liabilities assumed by the reinsurer no longer count against the primary insurer own underwriting capacity, reinsurance allows primary insurers to expand the volume of policies they can underwrite. This description is adapted from Wikipedia contributors under CC BY-SA 4.0; changes were made. https://creativecommons.org/licenses/by-sa/4.0/