What is a reinsurance broker?


Editorial team Published on

A reinsurance broker is an independent intermediary who helps primary insurance companies (cedent companies) buy insurance protection—known as reinsurance—from larger reinsurance companies.

Instead of selling policies to the public, they act as a bridge between an insurer and a reinsurer to manage risk and financial stability.

What They Do

  • Assess Risk: They review an insurance company's portfolio and financial health to figure out how much risk needs to be transferred.
  • Negotiate Terms: They shop the global reinsurance market to find competitive rates, premiums, and contract conditions.
  • Design Programs: They structure agreements, which can be treaty reinsurance (covering a whole portfolio of risks) or facultative reinsurance (covering single, specific, or large risks).
  • Handle Administration: They help manage contract documentation, claims processing, and ongoing accounting statements.