Primary insurance
In primary insurance, there is an insurance contract between an insurer and a policyholder as the end user of the insurance cover . The opposite is reinsurance .
General
The policyholder of a primary insurance is usually not an insurer himself, but a natural or legal person as the direct beneficiary of the insurance cover. The exception is the insurance coverage that insurers need for their own administrative buildings or vehicles. In this case, both contracting parties are insurers, but they act as primary insurers and policyholders. The term primary insurance is commonly used to denote insurance business that is not reinsurance.
Differentiation from reinsurance
In the case of reinsurance, there is usually a contractual relationship between two insurance companies; it enables the primary insurer to reduce his underwriting risk by taking risks for a premium. Reinsurance protects the primary insurer against the loss of assets that he would suffer as a result of the occurrence of his obligation to provide benefits under the insurance contracts he has concluded. This reinsurance is also known as ceded or passive reinsurance .
Web links
- Primary insurance
- Primary insurance (Wirtschaftslexikon.gabler.de)
Individual evidence
- ^ Frank von Fürstenwerth / Alfons Weiss, Versicherungsalphabet , 2001, p. 212
- ↑ Peter Liebwein, Classic and modern forms of reinsurance , 2009, p. 61 f.