BizTerm Definition
Full Definition

(1) Assumption by one insurance company of all or part of a risk undertaken by another insurance company. (2) The acceptance by one or more insurers, called reinsurers, of a portion of the risk underwritten by another insurer who has contracted for the entire coverage. (3) The purchase of insurance by an insurance company from another insurance company (reinsurer) to provide it protection against large losses on cases it has already insured.

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