reinsurance
5
7.8
- noun
- /ˌriːɪnˈʃʊərəns/
- Specialized
:
reaseguro
- The insurer purchased reinsurance to protect itself from large claims after a natural disaster.
- reinsurance market
- soft reinsurance
- hard reinsurance
The cost of reinsurance goes up around the world as risk rises, losses increase, and the costs of reconstruction goes up.
- The cost of reinsurance goes up around the world as risk rises, losses increase, and the costs of reconstruction goes up.
Examples
-
The reinsurance market is assumed to accommodate demand by each primary insurer at a standard price level.
Academic text (2016) -
And they decided they would not issue certain kinds of reinsurance coverage.
Academic text (1994) -
Ohio has no plans to run a state reinsurance program at this time.
Blog text (17) -
As the number of insurers in the market changes, the use of reinsurance changes as well.
Academic text (2016) -
Implement state high-risk pools or reinsurance programs to provide coverage to people with pre-existing medical conditions.
Blog text (11) -
Reinsurance helps insurance companies manage their risk by allowing them to share potential losses with another company.
-
Many insurance companies rely on reinsurance to stabilize their financial operations and mitigate risks.
Surface Forms
Morphology
reinsurance = insurance (semi-transparent) = re + insurance
The components 're-' (again) and 'insurance' are clear, but the technical industry meaning 'insurance purchased by an insurer from another insurer' is more specific than a simple 'again' reading and may not be fully inferable by an average learner.
Etymology
Reinsurance comes from the prefix re- meaning 'again' and the word insurance, so it is like 'insurance for insurance'. So, reinsurance is the extra insurance an insurance company buys to protect itself from very large or risky losses.