Reinsurance

NACE v2.0 Code: K65.2

About reinsurance

NACE code 65.2 covers the reinsurance industry, a crucial component of the broader insurance sector. Reinsurance involves insurance companies transferring portions of their risk portfolios to other insurers, known as reinsurers, in exchange for a portion of the premium. This practice helps insurance providers manage their exposure to large or catastrophic claims, ensuring the stability and solvency of the insurance market as a whole. The reinsurance industry plays a vital role in supporting the broader economy by providing risk management solutions to businesses and individuals.

Production process

The reinsurance process typically involves several key steps. Firstly, insurance companies assess their risk exposure and determine which portions of their portfolio they wish to cede to reinsurers. Reinsurers then evaluate the risks and determine the appropriate premiums to charge. Once an agreement is reached, the insurance company transfers the specified risks to the reinsurer, who in turn agrees to cover a portion of any future claims. Reinsurance contracts can vary in their structure, duration, and the types of risks covered, depending on the specific needs of the insurance company and the capabilities of the reinsurer.

Production inputs

The reinsurance industry relies on several key inputs, including actuarial data, risk modeling software, and a pool of experienced underwriters and risk analysts. Reinsurers must have a deep understanding of various risk types, such as natural disasters, liability claims, and mortality rates, in order to accurately price their reinsurance products. Additionally, reinsurers require significant financial resources, as they must be able to cover large claims should they arise.

Production outputs

The primary output of the reinsurance industry is the provision of risk transfer solutions to insurance companies. By ceding a portion of their risk to reinsurers, insurers are able to free up capital, diversify their risk portfolios, and ultimately offer more competitive products to their customers. The reinsurance industry's outputs are consumed by 65.1 Direct insurance providers, who rely on reinsurance to manage their own risk exposures and ensure the long-term viability of their businesses.

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 page shows a legacy version of code 65.2 ( NACE v2.0).

Newer versions

Related ISIC Codes

These isic codes are related to this econ code: (65.2).

ISIC code ISIC Version ISIC title
652ISIC v4.0Reinsurance

Family tree for reinsurance

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

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

    C --> F["<a href='/classifications/nace/v2/K/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
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class C level3
class D level3
class E level3
class F level4

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