Valuables and property need insurance. And insurance companies also need someone to protect them: that is where reinsurance comes in.
When they assume risks, insurance companies look for guarantees to honor their commitments in the event of losses. For this reason, they pass on part of the responsibility, and the premiums, to reinsurers.
There are innumerous advantages to this pulverization, such as an increase in capacity to absorb risks, maintenance of insurance company financial health, protection in the event of catastrophes, knowledge transfer in the industry, and others.
Therefore, reinsurance is an activity which brings security to all parties involved and has a fundamental role in making large projects feasible, thus making an essential contribution to economic development.
