What is Reinsurance?
Reinsurance is the process where an insurance company (reinsurer) agrees to take on all or part of the risk covered by another insurance company (the ceding company) under a contract.
In simple terms, reinsurance is when an insurance company insures itself. Regardless of its size, if an insurance company retains any insurance risk, it could face potential loss incidents that may lead to bankruptcy. To prevent such situations and to ensure timely and quality settlement of customer claims, insurers also purchase insurance for themselves.

 
Reinsurance provides us with the following opportunities:

• Risk diversification;
• Increase in risk capacity;
• Increase in the number of risks accepted for insurance;
• Stabilization of underwriting operations;
• Ensuring security;
• Strengthening confidence;
• Improvement in the management of portfolios and assets;
• Advantage in the flow of financial resources and creation of reserves.