# Reinsurance

*Insurance — Finicade finance glossary*

Reinsurance is insurance for insurers, letting a company cede part of a risk it has written so a single catastrophe can't destroy it. It's what allows a regional insurer to cover a hurricane zone at all. Because reinsurers are few and globally interconnected, the industry is a genuine channel of systemic risk: a shock large enough to strain them raises the price of primary cover everywhere at once.

**Also known as:** reinsurer, risk transfer, treaty reinsurance

**Related terms:** [Catastrophe Bond](https://finicade.com/glossary/catastrophe-bond), [Insurance](https://finicade.com/glossary/insurance), [Systemic Risk](https://finicade.com/glossary/systemic-risk), [Insurance Float](https://finicade.com/glossary/insurance-float), [Combined Ratio](https://finicade.com/glossary/combined-ratio)

Source: https://finicade.com/glossary/reinsurance