Double Insurance Vs Reinsurance. On the contrary, in reinsurance, the original insured has no interest in reinsurance. Basis of difference double insurance reinsurance;
Reinsurance occurs when multiple insurance companies share risk by purchasing insurance policies from other insurers to limit their own total loss in case of disaster. In double insurance, the same risk is insured with different insurance companies or more than one insurance company. With reinsurance, an insurance provider can limit themselves from the potential loss of amount.