INSURANCE & REINSURANCE
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Insurance and Reinsurance
Posted on: 29 June 2008Reinsurance is an insurance transaction between insurance companies in which an insurance company transfers all or part of a risk by entering into a contract with another insurance company. When it does this, it creates a reinsurance transaction. The company that reduces its risk, typically by paying a fee, is called the ceding company, and the company that takes on the risk is called the assuming company.
