Definition

A type of insurance that insurance companies buy to protect themselves from large losses by sharing the risk with other insurers.

Example

The insurance company decided to purchase reinsurance to reduce its financial risk.

Conversation

I heard you got a job in the insurance industry, right?

Yeah, I’m really excited about it! I’m learning a lot about reinsurance too.

That sounds interesting! How does reinsurance work exactly?

It's basically insurance for insurance companies, helping them manage risk better.

Synonyms & Antonyms

Root Explanation

Reinsurance → It is formed from "re-" (meaning again) and "insurance" (from Old French *ensurer*, meaning to make sure or secure). The word "reinsurance" means the act of securing again, typically referring to insurance taken out by an insurance company to mitigate risk.

Memory Tip

Think of 'securing again' — 're-' means again, and 'insurance' means to make sure. This helps you remember that reinsurance is about making sure again.

Visually Confused Words