How Insurance Works

Back to basics : la réassurance, une ” super-assurance ” ?

Insurance: Back to basics! Two minutes to understand reinsurance Did you know your insurance company has its own insurance policy? That might sounda bit far-fetched but reinsurance has existed for a very long time. In fact, as early as the 14th century, reinsurance was being used to cover great maritime expeditions, which were an enormous financial risk at the time. Reinsurance allows insurers and their clients to protect themselves against very high risks, which could endanger their activity. Imagine, for example, an earthquake that destroys thousands of homes. Or a car model produced in series with a manufacturing fault that could provoke several hundred accidents. In order to manage very high risks and protect their clients, insurers turn to reinsurers. Reinsurers are found around the world and take care to hold a portfolio of risks that is sufficiently diversified so that they avoid ever being endangered by these events. At AXA, we have gone so far as to create our own internal reinsurance structure. It capitalizes on the Group’s presence in 64 countries to best diversify the risks managed by AXA’s various local subsidiaries. It brings together the best engineers and data scientists, specialised in the analysis of all types of risk meteorological, seismological, or cyber in order to develop precise expertise which allows for modelizing and anticipating large-scale risks. All to guarantee that our clients will be protected in all circumstances.

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