Insurance Made Simple

If you’re visiting this page, then good on you for trying to understand insurance better! We’ve highlighted common and useful insurance terms here and broke them down in plain English.
Reinsurance

Reinsurance is a form of protection purchased by insurance companies to reduce financial burden and risk.

Why it matters:

For the same reasons you would buy insurance, most insurers also buy reinsurance to manage their own risks. Reinsurance companies help pay a portion of claims, which goes a long way to help us stay financially healthy and stable. In other words, you don't have to worry about our ability to pay claims!