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Reinsurance is a form of insurance purchased by insurance companies to protect themselves against the risk of large losses. It is a form of risk management, primarily used to hedge against the risk of a catastrophic loss. Reinsurance companies provide insurance companies with protection against losses from events such as natural disasters, fires, and other catastrophes.
Reinsurance companies are typically large, international companies that specialize in providing insurance to other insurance companies. They are often referred to as “insurers of insurers”. Reinsurance companies are typically well capitalized and have access to a wide range of risk management tools.
Some of the largest reinsurance companies in the world include Munich Re, Swiss Re, and Hannover Re. Other major reinsurance companies include SCOR, Gen Re, and XL Catlin. Show Less Read more