What does reinsurance mean?
Insurance that an insurance company takes out to protect itself against losses from its own insurance policies. It is a form of risk management that allows the insurer to transfer some of the risk to another insurer.
Example
"The company took out a reinsurance policy to cover the risk of large claims from its auto insurance policies."
Reviewed by Deb Chak, Editor. AI-assisted content curated by RJS Tech Solutions LLP.