Re-Insurance

Reinsurance is an insurance that is purchased by an Insurance company from one or more other insurance companies to manage the risk. Reinsurance helps in transfer of risk from one insurance company to another. It is also called “insurance for insurers” or “stop-loss insurance”.

What is Re-insurance?

Re-insurance is purchased by a ceding company (company seeking insurance) by an insurance agreement with re-insurers (other insurance companies) to reduce potential risk by diversifying its insurance portfolio.

No legal rights of the policyholder are in any way affected through a reinsurance agreement and the insurance company (ceding company) continues to remain liable to the policyholder for benefits and claims.

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Re-Insurance

Reinsurance is an insurance that is purchased by an Insurance company from one or more other insurance companies to manage the risk. Reinsurance helps in transfer of risk from one insurance company to another. It is also called “insurance for insurers” or “stop-loss insurance”.

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