"Reinsurance" Pronounce,Meaning And Examples

"Reinsurance" Meaning

Reinsurance refers to a type of insurance purchased by insurance companies to protect themselves against potential losses from their customers' insurance claims. It is an insurance policy taken out by an insurer on a policy it has already issued to a third party, effectively transferring some risk from the insurer to another party.

"Reinsurance" Examples

Usage Examples

When a natural disaster strikes, a reinsurance company compensates an insurance company for losses it has incurred.
Reinsurance allows an insurance company to accept riskier clients it might not have otherwise taken on.
Some insurance companies are forced to pass the costs of reinsurance on to their premiums.
Paul's company acts as a reinsurer, pooling risk with other reinsurers to attract higher-paying, higher-risk clients.
Companies that heavily rely on reinsurance may be negatively impacted if the reinsurance market is not stable.