reinsurance
nounA renewed or second insurance.
A contract by which the first insurer relieves himself from the risks he had undertaken, and devolves them upon other insurers, called reinsurers. Also called reassurance.
Insurance a second time or again; renewed insurance.
A contract by which an insurer is insured wholly or in part against the risk he has incurred in insuring somebody else. See Reassurance.
Insurance purchased by insurance companies that spreads the risk associated with selling insurance around so the danger of one large monetary loss is minimized.
