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Insurance is a risk transfer process starting from the original insured who transfer his own risk to the insurance company and may retain part of the risk in term of policy excess or deductible .
The insurance company accept to cover the insured's property retain part of the risk and transfer the other part to reinsurer .
The reinsurer who accept to cover the business that offered by the insurance company retain part of the risk and transfer the other part of the cession to the retrocessionaire.
By this insurance and reinsurance technical process all substantial risks as well as the small risks that underwriten in the direct insurance company office distributed and break and spread to a small amounts in a manner that the insured , insurance company and reinsurer being able to cover and participate in each and every loss that may arise during the course of the insurance policy .
Thanking you.
