0
Perhaps surprisingly, the answer is "yes." Most insurance companies choose to buy "re-insurance," and this is a very interesting - and different - type of insurance than what you or I generally see. While there are thousands of different insurance companies, there are only a handful of re-insurers.Re-insurance companies contract with "regular" carriers to cover unexpected catastrophic losses. For example, the companies that insured businesses in the World Trade Center may have expected a few minor claims over the years (a broken window, a stolen laptop, a twisted ankle), they likely never counted on the kind of total losses generated on 9/11. It's a safe bet that they had agreements (called "treaties") in place with at least one re-insurer to help cover the tremendous number of dollars associated with that tragic event.Reinsurance companies work by agreeing to "buy" (take on) a set amount of losses which an insurance carrier feels is beyond its comfort level. The insurance company agrees to pay a premium (just like you or I) to the reinsurance company, which then agrees to pay for excess loses incurred by the original carrier. Call it "Insurance insurance," it's a vital part of how insurance companies can take on additional risk and still remain in business in the face of large, unexpected losses.
Insurance Companies ceded their risks to reinsurers who are specialised to assume a portfolio of large (e.g. satellites, airplane) and volatile (e.g. Hurricanes, earthquakes) risks. These risks are usually distributed to a number of reinsurers whose value proposition is a strong capital base and diversification.
Add your answer:
Earn +20 pts
Does insurance company are insured?
Insurance companies have re-insurers to protect their assets.
What companies can make sure livestock are insured?
The companies that make sure livestock are insured would be Foster Swift, or Sanger Insurance. You may have some companies local to you that may offer livestock insurance.
What is the difference between a company that is fully insured and one that is self insured?
A company that is fully insured goes to an insurance company and buys insurance. A company that is self insured does not buy insurance and plans to pay any claims out of the companies "pockets". For instance, if you own a home but choose not to buy home insurance, you are self insured if you should have a fire.
How does someone get an online insurance quote?
Several insurance companies allow potential customers to get an online quote. Typically the person to be insured will need to provide information about themselves and the property that needs to be insured. Some insurance companies will also use the information provided to estimate the cost that may be charged by competing insurance companies.
Who insurer pays when an item is insured twice by two insurance companies?
anal
Can you have two different cars insured by two different insurance companies?
Yes
Are the companies that offer the lasik procedure insured?
Many of the companies that offer that procedure to be done are insured. The only thing that you will want to make sure is if your insurance covers such an expense.
Where can I find a list of appropriate life insurance agencies?
This depends on the type of insurance, and on what you are looking to get insured, there are many companies that you can consider to get your insurance from.
Which companies in Pennsylvania offer PIP car insurance?
their are many companies which offer pip car insurance you can even get it insured online for detailed information try this : http://www.business.com/insurance/auto-insurance-in-Pennsylvania/
Where can you find information about term insurance?
There are a variety of companies that offered term insurance. You can compare rates among these companies. Term Life Insurance rates are based on the insured's age and medical history.
Which companies provide countrywide insurance?
Pretty much all insurance companies offer countrywide insurance. If one is not insured in the whole of one's own country, then there would be little point in being insured. It would be self harming business on the part of the insurance companies, and they are more clever than that. What is important on the other hand, would be to buy an extra travel insurance for when one goes abroad.
What do you understand by double insurance?
Double insurance is when you have something insured by two companies like when a husband and wife both have medical insurance on each other.
