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Reinsurances in people’s insurances

Author

Listed:
  • Maria VADUVA

    (Constantin Brancusi University of Targu Jiu, Romania)

Abstract

Reinsurance has an important role as it fulfills the following functions: offers capacity, creates stability, contributes to reinforcement of finanaciar power. The initial reason of reinsurances is granting capacity. In each chapter of insurances there are risks that an insurance society can not afford to keep for own portofolio. Reinsurances maintain constantly the results of the society of insurances for a certain period of time. Result can fluctuate as a result of gathering some individual demanges which appear in a period of time or as a result of unexpected demange, very big. Reinsurance decries this fluctuation by limitation of the exposure of individual risks to demange or bz restrictions of demanges to which a portofolio might be a subject.

Suggested Citation

  • Maria VADUVA, 2010. "Reinsurances in people’s insurances," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 1, pages 105-110, April.
  • Handle: RePEc:cbu:jrnlec:y:2010:v:1:p:105-110
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