reinsurance
n. uncountable C1 Advanced US //ˌɹiɪnˈʃʊɹəns// UK //ɹˌiːɪnʃˈɔːɹəns// rein·sur·ance
n. insurance that a company buys to protect itself from very large losses. It helps the company stay safe if it has to pay a huge amount of money to a customer.
n. insurance purchased by an insurance company to protect itself against large or unexpected losses. It allows the primary insurer to transfer part of its risk to another entity.
The company buys reinsurance to cover major disasters.
After the hurricane, the primary insurer relied on its reinsurance partners to cover the massive claims from damaged properties.
The stability of the global insurance market depends heavily on the robustness of the reinsurance sector, which acts as a secondary safety net for primary carriers facing systemic risk.
From re- + insurance.