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The Microeconomic And Macroeconomic Significance Of Reinsurance

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Author Info
Zuzana Krátka
Abstract

Amongst the most significant macroeconomic functions of reinsurance are the stabilizing, innovative and accumulative functions. The most important microeconomic functions of reinsurance are the protection of the cedent and the protection of the insureds. Reinsurance increases the insurance companies' capacity, diversifies their risk portfolios, allows for quantitative and qualitative broadening of the accepted risks' spectrum, strengthens their solvency and economic stability and enables them to gain necessary know-how. In the long run, reinsurance is a stabilizing factor for not only individual insurance subjects but the entire economy as well.

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Publisher Info
Article provided by University of Economics, Prague in its journal Acta Oeconomica Pragensia.

Volume (Year): 2009 (2009)
Issue (Month): 2 ()
Pages: 38-51
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Handle: RePEc:prg:jnlaop:v:2009:y:2009:i:2:id:12:p:38-51

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Related research
Keywords: microeconomic functions of reinsurance; macroeconomic functions of reinsurance; role of reinsurance in the economy;

Find related papers by JEL classification:
G22 - Financial Economics - - Financial Institutions and Services - - - Insurance; Insurance Companies

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This page was last updated on 2009-12-16.


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