reinsure

/'ri:in'ʃuə/

Thân thiện

An insurance company decides to reinsure a portion of its major policy.

Definition

1. Verb:
   • To insure again by assuming all or a part of the liability of an insurance company already covering a risk: This is the primary meaning, where one insurer (the reinsurer) agrees to cover part of the risk originally underwritten by another insurer (the ceding company).
   • To insure again by transferring to another insurance company all or a part of a liability assumed: This describes the act of the original insurer (the cedent) seeking coverage from a reinsurer.
   • To provide additional insurance for: This is a more general sense of obtaining further insurance coverage on an already insured risk.

Usage Examples

• Verb:
  • The primary insurer decided to reinsure a portion of its catastrophic risk to protect its financial stability.
  • Large insurance companies often reinsure policies to spread their potential losses.
  • The treaty allows the company to reinsure liabilities with several international partners.

Advanced Usage

• "to reinsure a portfolio": to transfer the risk of a group of insurance policies to a reinsurer.

  • The company's strategy is to reinsure its entire commercial property portfolio.

• "to be reinsured" (passive voice): describes the state of having risk transferred.

  • The high-value policy was reinsured with a syndicate at Lloyd's of London.

Variants and Related Words

• Reinsurance (n): The practice or contract of reinsuring; the business of accepting risks from primary insurers.

  • The company specializes in catastrophe reinsurance.

• Reinsurer (n): A company that provides reinsurance.

  • They are a major global reinsurer.

• Cede (v): To transfer insurance risk to a reinsurer. (This is a key action in the reinsurance process).

  • The insurer will cede 50% of the risk.

Synonyms

• Underwrite again: To agree to cover a risk that is already insured.
• Cede risk: To transfer insurance risk to another party.

Related Phrases

• Facultative reinsurance: Reinsurance negotiated for a single, specific risk or policy.

  • They arranged facultative reinsurance for the large industrial facility.

• Treaty reinsurance: A standing agreement where an insurer automatically cedes and a reinsurer automatically accepts a defined share of risks.

  • Their treaty reinsurance arrangement covers all auto liability policies.

Học thuật

Verb

1. insure again by assuming all or a part of the liability of an insurance company already covering a risk
2. insure again by transferring to another insurance company all or a part of a liability assumed
3. provide additional insurance for