Growth of Reinsurance in India
Introduction: Reinsurance means by which an can protect itself against the risk of losses with other insurance companies Individuals and corporations obtain insurance policies to provide protection for various risks (hurricanes, earthquakes, lawsuits, collisions, sickness and death, etc ) Reinsurers, in turn, provide insurance to insurance companies It is a financial management tool. It is always behind the high quality insurance program or a complex commercial risk of any good insurer. Reinsurance is a very specific sector in the sphere of insurance. A complex business, it allows insurers to cover their risks by ceding them to a reinsurer. In this context, the reinsurer is obliged to indemnify the "ceding company" in the event of a claim.
Reinsurance industries are maintaining upward surge all round growth, both in the domestic and global fronts in the last few years The untapped, both in life and non -life insurance, particularly in growing economies like India and chin a, is the center of attraction to leading players in insurance and reinsurance, thanks to globalizations and liberalizations of financial services particularly in last decades.
It is a tool of risk management. Mutual support and supplement each other in providing risk mitigation to the individuals and organizations at micro level and to the country. Reinsurance is instrument of risk transfer and risk financing. Reinsurance can be described as contract made between an insurance company(insurer) and a third party (reinsurer) where in the later will protect the former by paying losses sustained by it under the original contract of insurance, unlike primary insurance, the reinsurance mainly deals with catastrophic risk which are not only highly unpredictable but have the potential capacity to cause huge devastation thereby threatening the solvency of the insurance company
HOW DOES IT COMPARE TO
Reinsurance industries are maintaining upward surge all round growth, both in the domestic and global fronts in the last few years The untapped, both in life and non -life insurance, particularly in growing economies like India and chin a, is the center of attraction to leading players in insurance and reinsurance, thanks to globalizations and liberalizations of financial services particularly in last decades.
It is a tool of risk management. Mutual support and supplement each other in providing risk mitigation to the individuals and organizations at micro level and to the country. Reinsurance is instrument of risk transfer and risk financing. Reinsurance can be described as contract made between an insurance company(insurer) and a third party (reinsurer) where in the later will protect the former by paying losses sustained by it under the original contract of insurance, unlike primary insurance, the reinsurance mainly deals with catastrophic risk which are not only highly unpredictable but have the potential capacity to cause huge devastation thereby threatening the solvency of the insurance company
HOW DOES IT COMPARE TO