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Reinsurance

In: Export Credit Insurance and Guarantees

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  • Zlatko Salcic

Abstract

A primary insurer may decide to transfer one or several of its risks to a second insurer in exchange for payment of a premium, and this is called reinsurance. The second insurer is liable solely to the primary insurer and the primary insurer is liable to the insured and handles all matters prior or subsequent to loss. In a reinsurance contract the primary insurer is called the insurer and the second insurer is called the reinsurer. A reinsurance contract can cover a portfolio of risks or a single risk.

Suggested Citation

  • Zlatko Salcic, 2014. "Reinsurance," Palgrave Macmillan Books, in: Export Credit Insurance and Guarantees, chapter 18, pages 160-165, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-1-137-36681-8_18
    DOI: 10.1057/9781137366818_18
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