Reinsurance is a contract through which an insurer transfers defined risk to a reinsurer.
The distinction that matters
The original insurer generally remains responsible under its policy; a policyholder should not assume a direct right against a reinsurer.
What to check
- Distinguish treaty and facultative placement.
- Check proportional or excess structures.
- Consider counterparty and contract risk.
Example to discuss
An insurer uses catastrophe reinsurance to manage accumulation while continuing to handle its policyholders’ claims.
This is a hypothetical comparison, not a customer claim or a determination of cover.
Jurisdiction and scope
This is an insurer-to-reinsurer concept. A retail customer should check the original policy and insurer rather than infer a direct claim entitlement from a reinsurance structure. Reporting definitions and contract terms may differ.
Sources and further reading
General information only. The policy, schedule and applicable rules determine the actual position. For a personal decision, use an appropriately qualified adviser or the relevant provider.