Net premiums written by reinsurance industry in the U.S. 2001-2012
The statistic shows the net premiums written by the reinsurance industry in the United States from 2001 to 2012. In 2005, the net premiums written by the U.S. reinsurance industry amounted to approximately 25.3 billion U.S. dollars.
The reinsurance industry
Reinsurance is a variety of insurance which is used as a means of risk management. Risk management is the process of assessing, identifying and prioritizing risks, risks which are the effect of uncertainty on objects, regardless of whether or not these objects are considered to be positive or negative. Reinsurance is insurance that is purchased by a reinsurance company from one or a number of insurance companies with the ultimate aim of risk management. The purchaser of the insurance is known as the reinsurer, and the company from which they purchase is known as the ceding company or cedant. There are a number of companies, some of which are of considerable size, that solely specialize in reinsurance. This is not always the case however, and some organizations that partake in reinsurance can be normal insurance companies.
Almost all insurance companies have a program of reinsurance in some form or another. The ultimate aim of such initiatives is to decrease risk and exposure to loss by sharing some of the risk with a reinsurer. The sharing of risk and exposure, which is achieved through this process of risk transfer, allows the insurer to issue policies with higher limits than would otherwise be permitted. This practice enables insurers to swerve the significant losses that would result in financial impairment. The act of reinsuring involves a great deal of background research on the part of the reinsurers, it is important for them that the financials of the cedant company are reviewed closely, experience with the proposed business to be reinsured is reviewed in detail and that the underwriters that will write that business are looked at in great detail.
The reinsurance industry
Reinsurance is a variety of insurance which is used as a means of risk management. Risk management is the process of assessing, identifying and prioritizing risks, risks which are the effect of uncertainty on objects, regardless of whether or not these objects are considered to be positive or negative. Reinsurance is insurance that is purchased by a reinsurance company from one or a number of insurance companies with the ultimate aim of risk management. The purchaser of the insurance is known as the reinsurer, and the company from which they purchase is known as the ceding company or cedant. There are a number of companies, some of which are of considerable size, that solely specialize in reinsurance. This is not always the case however, and some organizations that partake in reinsurance can be normal insurance companies.
Almost all insurance companies have a program of reinsurance in some form or another. The ultimate aim of such initiatives is to decrease risk and exposure to loss by sharing some of the risk with a reinsurer. The sharing of risk and exposure, which is achieved through this process of risk transfer, allows the insurer to issue policies with higher limits than would otherwise be permitted. This practice enables insurers to swerve the significant losses that would result in financial impairment. The act of reinsuring involves a great deal of background research on the part of the reinsurers, it is important for them that the financials of the cedant company are reviewed closely, experience with the proposed business to be reinsured is reviewed in detail and that the underwriters that will write that business are looked at in great detail.
