What is Re?
The Re protocol acts as a global transaction layer for pure risk. It provides a direct way for most investors to earn insurance premiums by backing real-world risks in
|Commercial Multi Peril|
|Personal & Commercial Auto|
Is Re a blockchain?
Re is a smart contract protocol built upon the Avalanche blockchain.
How can I participate in Re?
The Cover protocol has four core participants:
Do I need to be an accredited investor to participate in the Senior Pool?
Yes, to be eligible all members must complete a KYC/AML process and provide proof of their accredited investor status.
What is reinsurance?
Reinsurance, often referred to as “insurance for insurance companies,” is a contract between a reinsurer and an insurer. In this contract, the insurance company—the cedent—transfers risk to the reinsurance company, and the latter assumes all or part of one or more insurance policies issued by the cedent.
Why is reinsurance important?
The main reason for opting for reinsurance is to limit the financial hit to the insurance company's balance sheet when claims are made. This is particularly important when the insurance company has exposure to natural disaster claims because this typically results in a larger number of claims coming in together.
How are profits generated in reinsurance?
For example, an insurance company might insure commercial property risks with policy limits up to $10 million, and then buy per risk reinsurance of $5 million in excess of $5 million. In this case, a loss of $6 million on that policy will result in the recovery of $1 million from the reinsurer.
What is an underwriter?
An underwriter is any party that evaluates and assumes another party's risk for payment. Underwriters work in many areas of finance, from the insurance industry to mortgage lending. Underwriters determine the level of the risk for lenders.