reinsurance

noun

re·​in·​sur·​ance ˌrē-ən-ˈshu̇r-ən(t)s 

ˌrē-ən-ˈshər-,

 also  (ˌ)rē-ˈin-ˌshu̇r-,

(ˌ)rē-ˈin-ˌshə̇r-

: insurance by another insurer of all or a part of a risk previously assumed by an insurance company

Examples of reinsurance in a Sentence

Recent Examples on the Web

In exchange, the legislation offered federal subsidies for reinsurance that would cover future catastrophic losses incurred in these markets. —Stephen Mihm, The Mercury News, 15 Feb. 2025

In the past, the amount insurers paid for reinsurance did not go into rate calculations. —Chris Isidore, CNN, 6 Feb. 2025

Insurers typically acquire reinsurance from other larger insurers to avoid large payouts in case of wildfires and other catastrophic events. —Paul Du Quenoy, Newsweek, 31 Dec. 2024

While new regulations let insurers pass reinsurance costs to customers and use wildfire modeling to increase rates, these changes won’t be enough to keep insurers from leaving the state. —Phillip Molnar, The Mercury News, 16 Jan. 2025

Word History

First Known Use

1705, in the meaning defined above

Legal Definition

reinsurance

noun

re·​in·​sur·​ance ˌrē-ən-ˈshu̇r-əns, -ˈin-ˌshu̇r- 

: insurance or indemnification by a second insurer of all or part of a risk assumed by another insurer as contracted for by the first insurer see also cede compare direct insurance, retrocession sense 3