Reinsurance

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January 1, 1 6 min read Definitions

Reinsurance Risk Management Insurance Companies Hazard Insurance Solvency Risk Transfer Insurable Risk Insurance Portfolio

Reinsurance is the practice where insurance companies transfer portions of their risk portfolios to other parties to reduce the likelihood of paying a large obligation resulting from an individual claim. This process helps insurance companies stay solvent by mitigating the impact of significant or catastrophic losses.