Reinsurance
/ˌriː.ɪnˈʃʊə.rəns/noun
Insurance purchased by an insurance company to mitigate risk.
Did you know?Reinsurance can be traced back to medieval times when merchants sought ways to protect their investments against the perils of sea voyages and trade routes.
Etymological Timeline
Middle English
English
reinsurans
“A term used to describe the action of securing back-up coverage for previously insured risks.”
16th Century
Latin
reassicurare
“To assure again, to provide insurance once more.”
17th Century
French
réassurance
“The act of providing a second layer of protection against loss.”
Modern English
English
reinsurance
“The practice of insurers transferring portions of risk to other insurers to reduce the likelihood of paying a large obligation.”