What is reinsurance?
It is the transfer of risk making the insurer (assignor) to another entity called re-insurer, according to the requirements given in a Special Convention called Reinsurance Agreement.
If the coinsurance is the horizontal distribution of risk, reinsurance is the vertical distribution of risk. Coinsurance participation can also be reinsured. The portion assumed by the insurer or co-insurer is called retention. The re-insurer assumes the surplus together with the corresponding to this excess premium. Reinsurance is an institution eminently international, subject to technical standards, legal business, and own doctrinaire. It is valid to indicate that reinsurance is insurance for insurance and is the most obvious proof of insurance international solidarity.
What are the kinds of insurance?
A classification to the the classical insurance:
- Insurance Property
- Personal Insurance.
Insurance damage to property or
Refer to covering things or goods such as fire, theft; helmets, maritime transport. This group is characterized by having a sum insured limit to its real value. These damage insurance are strict compensation, being necessary for validity at the time of recruitment there is an insurable interest.