what types of reinsurance are there 
reinsurance has two basic categories treaty and facultative treaties are agreements that cover broad groups of policies like all a primary insurer s auto business facultative covers specific individual generally high value or hazardous risks such as a hospital that wouldn t be acceptable under a treaty 4the bottom linereinsurance often called insurance for insurance companies results from a contract between a reinsurer and an insurer in it the insurance company known as the ceding party or cedent transfers some of its insured risk to the reinsurance company as a result the reinsurance company assumes some or all of the insurance policies issued by the ceding party having reinsurance transfers risk to another company to reduce the likelihood of being exposed to large payouts for one or more claims 