As per title, do reinsurance companies get themselves insured? If not then how do they handle the risks of reinsuring insurance companies?
In: Economics
Other insurers, should they choose to do so. Insurers can offer both Direct insurance and Reinsurance.
To a reinsurer, the company they are insuring (a “cedent”) is, at its most basic, like any other policy holder – the reinsurer is just covering part of the claim the cedent has to pay.
Actually not too dissimilar to standard motor insurance where the policyholder is liable for vehicle damage.
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