Reinsurance is often described as insurance for insurance companies. In order for an insurer to be able to successfully develop and increase the amount of its underwriting risk, it needs to transfer the risk to someone else. Therefore, insurers transfer part of their portfolio to the reinsurer by paying a reinsurance premium, similarly as the client does when transfers the risk to the insurer.

Similarly as an insurance agreement provides for its own deductibles, risk coverage and conditions, a reinsurance contract determines the amount of loss that the insurer covers itself, the insured risks that are covered and the amount of loss to which the reinsurer covers losses to the insurer.

There are two basic methods of reinsurance:

  • Reinsurance of the entire portfolio or a certain line of insurance — Treaty reinsurance;
  • Reinsurance of individual object / risk — Facultative reinsurance.

 

What is the importance of this insurance?

Most of the risks accepted by insurers are reinsured, but there are certain risks or objects that cannot be insured under the insurers’ reinsurance contract. As insurance professionals, we are ready to find a solution by negotiating with reinsurers acting as reinsurance brokers and finding solutions for any type of reinsurance of individual large risks or insurers’ portfolios.

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