This is the type of insurance that is bought by another insurance company. This means that all of the insurers would usually transfer some parts of the insurance to their chosen parties. This would lessen the possibility of having to pay a large obligation due to an insurance claim of one of the customers.
Reinsurance will allow various companies to share the obligations being claimed by one insurer. Take note that this is usually chosen for protection in case of natural disasters. If you believe that you can benefit from this, you are encouraged to know more details about it to be sure.
