reinsure: meaning, definition, pronunciation and examples
C2Technical/Financial
Quick answer
What does “reinsure” mean?
To insure again by transferring all or part of an insurance risk to another insurer.
Audio
Pronunciation
Definition
Meaning and Definition
To insure again by transferring all or part of an insurance risk to another insurer.
To provide insurance for an insurer; to spread or share risk within the insurance industry.
Dialectal Variation
British vs American Usage
Differences
The term is identical in spelling, meaning, and usage in both UK and US insurance/finance sectors.
Connotations
Neutral technical term in both varieties. Connotes risk management, financial stability, and professional underwriting.
Frequency
Extremely low frequency in general English. Exclusively used within the insurance industry and related financial reporting or regulation.
Grammar
How to Use “reinsure” in a Sentence
[Insurer A] reinsures [risk/portfolio] with [Insurer B].[Insurer A] reinsures against [catastrophic loss].The company is reinsured under a treaty.Vocabulary
Collocations
Examples
Examples of “reinsure” in a Sentence
verb
British English
- The Lloyd's syndicate agreed to reinsure a significant portion of the hurricane risk.
- We must reinsure this liability to protect our balance sheet.
American English
- The primary insurer reinsured the policy with a Swiss reinsurance company.
- They decided to reinsure the catastrophic event coverage.
adverb
British English
- Not applicable; 'reinsure' does not have an adverb form.
American English
- Not applicable; 'reinsure' does not have an adverb form.
adjective
British English
- The reinsured risk was substantial. (past participle used adjectivally)
- A reinsured portfolio.
American English
- The reinsured policy terms were finalized. (past participle used adjectivally)
- Reinsured losses.
Usage
Meaning in Context
Business
Primary context. Refers to the standard practice of insurers spreading their risk exposure.
Academic
Used in academic papers on finance, risk management, and insurance law.
Everyday
Virtually never used in everyday conversation.
Technical
The core context. A standard term in insurance underwriting, contract law, and regulatory frameworks.
Vocabulary
Synonyms of “reinsure”
Vocabulary
Antonyms of “reinsure”
Watch out
Common Mistakes When Using “reinsure”
- Confusing 'reinsure' with 'reassure'.
- Using it to mean a customer getting a second insurance policy.
- Misspelling as 're-insure' (though hyphenated form is sometimes seen).
FAQ
Frequently Asked Questions
No. It is a specific financial transaction between professional insurers, not something an individual customer does.
Absolutely not. 'Reinsure' is a financial term. 'Reassure' means to comfort someone.
The 'ceding company' (or 'cedent') which buys reinsurance, and the 'reinsurer' which accepts the transferred risk.
Yes, it is a fundamental and massive part of the global insurance industry, essential for covering large-scale risks like natural disasters.
To insure again by transferring all or part of an insurance risk to another insurer.
Reinsure is usually technical/financial in register.
Reinsure: in British English it is pronounced /ˌriːɪnˈʃʊə/, and in American English it is pronounced /ˌriːɪnˈʃʊr/. Tap the audio buttons above to hear it.
Phrases
Idioms & Phrases
- “None specific to this term.”
Learning
Memory Aids
Mnemonic
Think: RE-do the INSURance. An insurance company itself gets insurance from another company to cover the massive risks it has taken on.
Conceptual Metaphor
INSURANCE AS SHARING A BURDEN. Reinsurance is metaphorically understood as passing a heavy load (financial risk) to another party to make it manageable.
Practice
Quiz
What is the primary purpose of reinsurance?