Sunday, November 22, 2020

What do you know about re insurers companies?

Reinsurance is the transfer of part or all of the insurance works contracted by the insurance company to another insurance company (reinsurance), 

insurance-company


and the value of the amount of insurance held by the first company under the title of retention, the second company (reinsurance) under the name of the waiver and the second company (reinsurance) may re-insure with a third company (reinsurance), and the insurance company uses the insurance companies to protect against losses, where the reinsurance process provides protection and reduction of its losses when exposed to losses where it is exposed to losses where it is exposed to losses where The re insurer pays a penalty or all losses that exceed the company's retention limit.

Reinsurance helps increase the insurance company's underwriting capacity, where when the insurance company re-insures part or all of its insurance business, it can accept some insurance above its retention limit, and then re-insured with another insurer with the excess limit.

It also contributes to the stability of profits where reinsurance can minimise the effects of large fluctuations in the financial results of the insurance company due to changes in economic and social conditions and natural disasters to which the country is insured with the insurance company, and reduce the allocation of unearned premiums where the reinsurance process reduces the size of the allocation of the acquired premiums required by law.

Reinsurance provides protection against losses where the reinsurance process provides protection and reduction of its losses when it suffers losses, where the re insurer pays a penalty or all losses that exceed the limit of the company's retention, and also the reinsurance of certain types, where the reinsurance allows the transfer of the obligations of the insurance provider to another contractor and the insurer remains responsible for the coverage of the documents, as well as obtaining advice and assistance re insurer where the re insurer provides assistance related to pricing, retention limits and policy coverage.

Most importantly, reinsurance helps protect insurance companies from bankruptcy, because if the company insures a high risk, it may be bankrupt edited when the risk occurs, but when you reinstate that risk to one or more re insurers, the re insurers will each pay a certain percentage of the loss equal to the percentage that accepted their reinsurance, and through this process the insurance company will be in a safe position.

The methods of reinsurance are divided into relative insurance agreements, and the first non-relative insurance agreements work to determine the share that the company wants to bear from the size of the insurance, and assign the remaining balance to the re insurer, and here is based on more than one reinsurance, and the insurance premiums and losses resulting in proportionality are distributed between the insurance company or the reinsurance companies, while non-relative agreements are based on the share that the insurance company wants to bear from losses.