Reinsurance

Reinsurance is the process by which an insurance company transfers a portion of its risk portfolio to another insurer, known as the reinsurer. This arrangement helps primary insurers strengthen their financial stability, increase underwriting capacity, and protect against large or catastrophic losses. By spreading risk across multiple parties, reinsurance ensures that insurers can honor policyholder claims even in the event of significant or unexpected losses. It is a vital component of the global insurance ecosystem, supporting sustainable growth, capital efficiency, and long-term risk management.