(business, insurance) Insurance purchased by insurance companies that spreads the risk associated with selling insurance around so the danger of one large monetary loss is minimized. Such insurance and catastrophe bonds are backstops to insurer insolvency from unexpectedly large losses.
Used in a Sentence
reinsurance
Definition, parts of speech, synonyms, and sentence examples for reinsurance.
Editorial note
> That's what the reinsurance market is for The risk is still being off-loaded to massive reinsurance companies.
Examples13
Definitions1
Parts of speech1
Quick take
(business, insurance) Insurance purchased by insurance companies that spreads the risk associated with selling insurance around so the danger of one large monetary loss is minimized. Such insurance and catastrophe bonds are backstops to insurer insolvency from unexpectedly large losses.
Meaning at a glance
The clearest senses and uses of reinsurance gathered in one view.
Definitions
Core meanings and parts of speech for reinsurance.
noun
(business, insurance) Insurance purchased by insurance companies that spreads the risk associated with selling insurance around so the danger of one large monetary loss is minimized. Such insurance and catastrophe bonds are backstops to insurer insolvency from unexpectedly large losses.
Example sentences
> That's what the reinsurance market is for The risk is still being off-loaded to massive reinsurance companies.
There's nothing fundamental about the reinsurance market that requires massive companies; that's the genius of it.
Here's an industry paper written by employees from a plethora of reinsurance companies.
The bigger the commercial line, the more likely it's all about who throws the best yacht parties (reinsurance in particular suffers from this massively).
I have to deal with a lot of millions and billions in work (reinsurance).
The problems aren't problems per se, the insurance business has those pretty well figured out (you hedge the risk on a reinsurance market like Lloyds of London).
The big winners are insurance companies and reinsurance syndicates.
And they can do exactly that--it's called reinsurance.
That's what the reinsurance market is for.
Outlier risks are covered by reinsurance.
That's what existing reinsurance companies do, if I understand correctly.
That's the only relevant question.[2] [1] And I would posit that software is easier to understand for a lay-person than a complex reinsurance arrangement or financial instrument.
Proper noun examples
Reinsurance policies can be pretty bespoke; you could for instance get a policy that only covers you in the event that a tornado hits corporate HQ (=> driving corporate revenues down and healthcare costs up at the same time), or individual payments above a certain amount, or N% of aggregate claims above a certain level.
Frequently asked questions
Short answers drawn from the clearest meanings and examples for this word.
How do you use reinsurance in a sentence?
> That's what the reinsurance market is for The risk is still being off-loaded to massive reinsurance companies.
What does reinsurance mean?
(business, insurance) Insurance purchased by insurance companies that spreads the risk associated with selling insurance around so the danger of one large monetary loss is minimized. Such insurance and catastrophe bonds are backstops to insurer insolvency from unexpectedly large losses.
What part of speech is reinsurance?
reinsurance is commonly used as noun.