Reinsurance

V.Veretnov transl. Mikhaylenko Lena KNEU

This term we are likely to have used on several occasions in our life. Recent changes in the development of human civilization accelerated to such degree that it gave the right to many modern scientists to philosophers argue that we live in an era of comprehensive and ubiquitous risk.

Probably it was not once necessary to hear, and maybe say such words as I was reinsured. What do we mean by that? For example such situation, that the risk of non-payment of insurance company is great enough, will suppose on motor Casko (hull insurance) and I was reinsured insured in two companies, reducing this risk twice.

Present insurance companies, also reinsured dividing the risk together with part of premiums collected from re / insurers. Knowledges, the mechanisms of decision of tasks for risk management flow and used both in an economic-insurance and in social-administrative sphere, both micro and macro levels.

The paradox of our risk thought interesting.  It consists in contradiction, conflict of interests of our personal and social consciousness. For example, in theory we agree with principle, that all people have a right on reimbursements of losses due to accidents occurring to them. In practice, it adds a lot of factors that complicate the implementation of this principle.

If individual does not have money facilities on insurance, he is unable it to take the liberty. Or if man, being insured, unconscientiously,  realized or on negligence behaved to the accident insured or after him, that resulted in the origin of losses or yet greater losses, such man, with such conduct deserves partial payment of insurance compensation or in general can be refuse in payment.

In our ordinary understanding of the reinsurance are necessary and used people with an enhanceable risk, or simply who it is not lucky on life. Reinsurance as a social institute in our life takes place also. For example, at birth of children, parents (insurers of children - insurer) invite godfathers (reinsurers).

In small and medium business, there is also not a formal, unofficial system (risk management), reinsurance of potential losses due to the director's fund or fund of the owner or official reserve assets of production and social development.

Summarizing understanding of ordinary sense of the term often used by us reinsurance should be noted that this is just a quality control our subjective, objective risk, especially in prevention efforts to reach a result with high accuracy six sigma. Naturally, reinsurance is creation of reserves for coverage of certain unfavorable cases. For example, if you go on a long journey by car, you need to take or have an extra spare tire, air compressor or a pump, glue, protective straps and instruments for independent repair of tire of wheel.