reinsurance

reinsurance definition - business

reinsurance

A transfer of the risk assumed by one insurance company to one or more other insurance companies. In short, reinsurance is insurance for insurers. For example, an insurance company that writes substantial amounts of homeowners' policies in Florida has an interest in transferring a large portion of the risk of loss to other insurance companies that write homeowners' policies in other areas of the country.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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