- What is Reinsurance?: Reinsurance is insurance for insurance companies. It allows insurers to manage risk and protect themselves from large losses.
- Types of Reinsurance:
- Facultative Reinsurance: Reinsurance purchased for individual policies.
- Treaty Reinsurance: A blanket agreement between the insurer and reinsurer to cover all policies in a specific category.
- Benefits of Reinsurance: Helps insurance companies stabilize their finances, increase capacity, and manage catastrophic risks.
Leave a Reply