Leading global reinsurance brokers in 2013, by gross reinsurance revenue
The statistic shows the leading global reinsurance brokers in 2013, by gross reinsurance revenue. In that year, the UK company Willis Re, part of the Willis Group Holdings plc, which is a multinational insurance brokerage company, ranked third with a gross reinsurance revenue amounting to approximately 860 million U.S. dollars.
The reinsurance industry
Reinsurance is a form of insurance which is used as a means of risk management. Risk management is the assessment, identification and prioritization of risks, risks which are defined as being 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 an insurance company from one or a number of insurance companies with the aim of managing risk. The purchaser of the insurance is known as the reinsurer and the company from which they purchase is known as the cedent or ceding company. There are a number of companies, some of which are very large indeed, that specialize solely in reinsurance but this is not always the case, some who partake in reinsurance can be normal insurance companies.
Almost all insurance companies have a program of reinsurance. The ultimate aim of such programs is to reduce risk and thereby 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 insurance company to issue policies with higher limits than would otherwise be allowed (in the US insurers are only permitted to issue policies with a maximum limit of ten percent of their net worth). This practice enables insurers to avoid significant losses resulting in inevitable financial impairment.
The act of reinsuring involves a great deal of background work on the part of the reinsurers, it is important to them that the financials of the cedent company are reviewed closely, experience with the proposed business to be reinsured is examined and that the underwriters that will write that business be reviewed in great detail and much more.
The reinsurance industry
Reinsurance is a form of insurance which is used as a means of risk management. Risk management is the assessment, identification and prioritization of risks, risks which are defined as being 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 an insurance company from one or a number of insurance companies with the aim of managing risk. The purchaser of the insurance is known as the reinsurer and the company from which they purchase is known as the cedent or ceding company. There are a number of companies, some of which are very large indeed, that specialize solely in reinsurance but this is not always the case, some who partake in reinsurance can be normal insurance companies.
Almost all insurance companies have a program of reinsurance. The ultimate aim of such programs is to reduce risk and thereby 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 insurance company to issue policies with higher limits than would otherwise be allowed (in the US insurers are only permitted to issue policies with a maximum limit of ten percent of their net worth). This practice enables insurers to avoid significant losses resulting in inevitable financial impairment.
The act of reinsuring involves a great deal of background work on the part of the reinsurers, it is important to them that the financials of the cedent company are reviewed closely, experience with the proposed business to be reinsured is examined and that the underwriters that will write that business be reviewed in great detail and much more.
