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Insurance Glossary

Reinsurer

Industry

Definition

An insurance company that assumes risk from another insurance company through a reinsurance agreement. The reinsurer provides financial protection to the ceding company against large or catastrophic losses.

Definición en Español

ES

Reasegurador

Una compañía de seguros que asume riesgo de otra compañía de seguros a través de un acuerdo de reaseguro. El reasegurador proporciona protección financiera a la compañía cedente contra pérdidas grandes o catastróficas.

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Related Terms

Reinsurance
Insurance purchased by an insurance company (the ceding company) from another insurance company (the reinsurer) to transfer risk and protect against large losses. Reinsurance allows insurers to underwrite policies covering higher risks and larger amounts than they could handle independently.
Ceding Company
The primary insurance company that purchases reinsurance to transfer part of its risk to a reinsurer. The ceding company retains a portion of the risk and cedes the remainder to the reinsurer.
Actuary
A business professional who analyzes probabilities of risk and risk management, including calculation of premiums, dividends, and other applicable insurance industry standards.
Underwriting
The process by which an insurer evaluates the risk of insuring a person or property and determines coverage terms and premium rates.
Loss Ratio
The ratio of losses paid plus loss reserves to premiums earned, used by insurers to measure underwriting profitability and pricing adequacy.
Combined Ratio
The sum of the loss ratio and expense ratio, measuring an insurer's overall underwriting profitability. A ratio below 100% indicates underwriting profit.
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