Results for tag: "Reinsurance Contract"

Reinsurance is a form of insurance purchased by insurance companies to protect themselves against the risk of large losses. It is a form of risk management, primarily used to hedge against the risk of a catastrophic loss. Reinsurance contracts are typically written for a period of one year, and are renewable annually. Reinsurance contracts are typically written between the ceding company (the primary insurer) and the reinsurer (the secondary insurer). The ceding company pays a premium to the reinsurer in exchange for the reinsurer assuming a portion of the risk associated with the policy. The reinsurer then pays out a portion of the claim if the ceding company is unable to cover the full amount. Reinsurance contracts are an important part of the insurance industry, as they help to spread risk and reduce the financial burden on insurers. They also help to ensure that policyholders receive the coverage they need in the event of a large loss. Some of the major companies in the reinsurance contract market include Munich Re, Swiss Re, Hannover Re, SCOR, and XL Catlin. Show Less Read more