# reinsurance

/ˌɹiɪnˈʃʊɹəns/ (US) · /ɹˌiːɪnʃˈɔːɹəns/ (UK) · CEFR C1 · Noun

Source: https://englishreference.com/word/reinsurance
Updated: 2026-05-25

## Definition

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.

For teachers: 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.

## Examples

- 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.

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