reinsurance

noun

re·​in·​sur·​ance ˌrē-ən-ˈshu̇r-ən(t)s 

ˌrē-ən-ˈshər-,

 also  (ˌ)rē-ˈin-ˌshu̇r-,

(ˌ)rē-ˈin-ˌshə̇r-

: insurance by another insurer of all or a part of a risk previously assumed by an insurance company

Example Sentences

Recent Examples on the Web

As the costs for insurers to take out their own insurance (reinsurance) has skyrocketed, a number of smaller firms there have gone bankrupt. —Kate Aronoff, The New Republic, 30 May 2023

Liberty Mutual will continue to operate some reinsurance and commercial insurance businesses in the region. —BostonGlobe.com, 30 May 2023

Design a federal reinsurance to fund care for those who will benefit from expensive treatment Flood insurance is often unavailable to those living in low-lying communities, and the federal government has addressed this need through subsidies and risk-sharing. —Jeff Levin-scherz, STAT, 16 Mar. 2023

Ambassador and White similarly approached State National to develop a captive reinsurance program, but State National declined. —Jay Adkisson, Forbes, 10 Feb. 2023

Multiple reinsurance firms—that is, companies that insure primary insurers—have left the market, after confronting a surge in payouts caused by increasingly inclement weather. —Eamon Barrett, Fortune, 30 Nov. 2022

Regarding the transition, the offsets are (without changes in bids or benefits) limited to what seniors pay in premiums, which currently is only about $12 billion annually—far short of the $30 billion reinsurance cut effective 2025. —WSJ, 4 Dec. 2022

The approach uses reinsurance markets to manage the risks of excessive natural hazards and ensure funds for response are available in a timely and reliable manner even in periods of excessive or unanticipated demand. —Nena Stoiljkovic, Fortune, 11 Oct. 2022

Reinsurance Group of America, a leading provider of traditional life and health reinsurance and financial solutions, saw its stock trading close to $155 in February 2020 just before the outbreak of the pandemic and is still almost 23% below that level. —Trefis Team, Forbes, 11 Oct. 2021

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Word History

First Known Use

1705, in the meaning defined above

Legal Definition

reinsurance

noun

re·​in·​sur·​ance ˌrē-ən-ˈshu̇r-əns, -ˈin-ˌshu̇r- 

: insurance or indemnification by a second insurer of all or part of a risk assumed by another insurer as contracted for by the first insurer see also cede compare direct insurance, retrocession sense 3