What is reinsurance? In the insurance industry

Construction engineering refers to all kinds of buildings and engineering facilities that provide material and technical basis for human life and production. Construction engineering is an organized, purposeful and large-scale economic activity of human beings. It is an engineering project that forms comprehensive production capacity or exerts engineering benefits in the process of reproduction of fixed assets. Construction in progress refers to the construction of new or original fixed assets.

Judging from the formation process of reinsurance relationship, reinsurance has the following situations:

1. Both reinsurance parties are insurance companies engaged in direct insurance business (hereinafter referred to as direct insurance companies, the same below), and one party distributes part of the insurance business directly undertaken by itself to the other party. Both parties involved in reinsurance are direct companies, the former is a separate company and the latter is a separate company.

Second, both parties are directly affiliated insurance companies and have their own independent businesses. This kind of reinsurance activity is called mutual reinsurance, and the two sides are separated from each other and enter the company.

Third, the two parties involved in reinsurance activities, one is a direct insurance company, and the other is a reinsurance company specializing in reinsurance business (that is, they can only accept reinsurance business, but not the direct insurance business of the insured). The former distributes part of the business to the latter, and the latter divides it into this part of the business. In this case, the direct insurance company is a branch and the reinsurance company is a branch.

Fourth, the two parties involved in reinsurance business, one is a direct insurance company and the other is a reinsurance company. Reinsurance companies allocate part of their insurance business to direct insurance companies, and direct insurance companies redistribute this business. Here, the reinsurance company is a branch company and the direct insurance company is a branch company.

Fifth, both parties involved in reinsurance business are reinsurance companies. One party redistributes a part of its insurance business to the other party, and the other party divides it into this part of business. The former is a subsidiary and the latter is a subsidiary.

Sixth, the two reinsurance companies reinsurance each other, that is, reinsurance each other.

The above reinsurance business forms permeate each other among various insurance companies, and the complex and extensive insurance economic relationship network and system make the insurance market an inseparable organic whole.

Further reading: How to buy insurance, which is good, and teach you how to avoid these "pits" of insurance.