Insurance Or Reinsurance. Reinsurance is a highly complex global business. The two concepts are very similar to each other but may differ in they way;
On the other hand paying valid claims is what the insurance and reinsurance business is all about. Reinsurers play a major role for insurance companies as they allow the latter to help transfer risk, reduce capital requirements, and lower claimant payouts. However good the risk management of a client may be, claims are inevitable and this is why the insurance or reinsurance client purchased cover in the first place.