Reinsurance

NACE v2.1 Code: L65.2

About reinsurance

NACE code 65.2 covers the reinsurance industry, a critical component of the broader insurance sector. Reinsurance refers to the practice of insurance companies transferring portions of their risk portfolios to other insurers in order to reduce their exposure and potential losses. This allows primary insurers to expand their underwriting capacity, diversify their risk, and maintain financial stability, ultimately benefiting both businesses and consumers.

Production process

The reinsurance process typically involves the ceding (transferring) of a portion of an insurance company's risk to a reinsurance provider. Reinsurers analyze the risk profiles and portfolios of their clients, then develop customized reinsurance contracts that specify the terms, conditions, and limits of coverage. This allows the primary insurer to offload a predetermined amount of risk in exchange for a reinsurance premium.

Production inputs

The key inputs for the reinsurance industry include the insurance policies and risk profiles of primary insurers, as well as the financial and actuarial expertise of reinsurance professionals. Reinsurers also rely on sophisticated data analysis and risk modeling tools to assess and price the risks they assume. Additionally, reinsurers require significant capital reserves to back their underwriting commitments.

Production outputs

The primary output of the reinsurance industry is the transfer of risk from primary insurers to reinsurers, enabling the former to expand their underwriting capacity and manage their exposure. The reinsurance industry's outputs are consumed by 65.1 Direct insurance companies, which rely on reinsurance to diversify their risk and maintain financial stability.

Revisions to 65.2

Classification codes are adjusted frequently. The code may have been revised or replaced between system versions. The table below shows the history (newest to oldest) of the code 65.2. The most recent 1 version of this code (65.2) is in the NACE v2.1 system (this version):

This page shows the most recent version of code 65.2.

Older versions

Family tree for reinsurance

    graph LR
    A["<a href='/classifications/nace/v2-1/L'>L: FINANCIAL AND INSURANCE ACTIVITIES</a>"]
A --> B["<a href='/classifications/nace/v2-1/L/65'>65: Insurance, reinsurance and pension funding, except compulsory social security</a>"]
B --> C["<a href='/classifications/nace/v2-1/L/65/2'>65.2: Reinsurance</a>"]

    B --> D["<a href='/classifications/nace/v2-1/L/65/1'>65.1: Insurance</a>"]
B --> E["<a href='/classifications/nace/v2-1/L/65/3'>65.3: Pension funding</a>"]

    C --> F["<a href='/classifications/nace/v2-1/L/65/20'>65.20: Reinsurance</a>"]


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    classDef level4 color:#000,fill:#c04abc,stroke:#333,stroke-width:1px
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    classDef level6 color:#000,fill:#f1c40f,stroke:#333,stroke-width:1px
    classDef highlight color:#000,fill:#fff,stroke:#000,stroke-width:5px



  %% Apply classes
  class A level1
class B level2
class C level3
class D level3
class E level3
class F level4

  class C highlight

  %% class A level1
  %% class B,C level2
  %% class D,E,F,G,H,I level2
  %% class J,K,L,M,N,O,P level3
  %% class C highlight