Reinsurance

NACE v2.1 Code: L65.20

About reinsurance

NACE code 65.20 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, known as reinsurers, in exchange for a portion of the premium. This allows insurance providers to manage their exposure, increase their underwriting capacity, and maintain financial stability. The reinsurance industry plays a vital role in the global economy by facilitating risk distribution and ensuring the resilience of the insurance market.

Production process

The reinsurance process typically involves several key steps. Firstly, insurance companies assess their risk exposure and determine the portions they wish to cede to reinsurers. Reinsurers then evaluate these risks, price the reinsurance contracts, and decide on the terms of coverage. Sophisticated actuarial models and data analysis are used to assess the probability and potential impact of claims. Reinsurance contracts can take various forms, such as proportional treaties, where the reinsurer shares a percentage of the risk, or non-proportional treaties, where the reinsurer covers losses above a certain threshold.

Production inputs

The reinsurance industry relies on several key inputs, including access to robust data and analytics, a deep pool of actuarial expertise, and substantial financial capital. Reinsurers must maintain a strong understanding of global risk trends, emerging threats, and the performance of various insurance portfolios. They also require significant financial resources to cover potential claims and maintain solvency. Reinsurance companies often invest in advanced technologies, such as predictive modeling and risk management software, to enhance their decision-making and risk assessment capabilities.

Production outputs

The primary output of the reinsurance industry is the provision of risk transfer and management services to insurance companies. By ceding a portion of their risk to reinsurers, insurers can free up capital, increase their underwriting capacity, and offer more comprehensive coverage to their clients. The reinsurance industry's outputs are consumed by various other NACE codes, including 65.11 Insurance, 66.21 Risk and damage evaluation), and [nc_link(66.22)Activities of insurance agents and brokers.

Revisions to 65.20

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 65.20. The most recent 1 version of this code (65.20) is in the NACE v2.1 system (this version):

This page shows the most recent version of code 65.20.

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

    
    

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