A brief guide to facultative and treaty reinsurance
insurancebusinessmag | June 03, 2019
Reinsurance is often described as insurance for insurance companies. Its a way for insurance companies to transfer some of the financial risk they assume when issuing insurance policies. They do this by ceding some of their risk to another insurance company, the reinsurer. This protects traditional insurers against circumstances where they dont have enough money to pay out all of the claims owed.