Reinsurance facility

{
  "id": "MLC-T-INS-002852",
  "term": "Reinsurance facility",
  "field": "Insurance and risk management",
  "definition": "An arrangement, often established by a government or an industry association, that provides reinsurance capacity for specific types of high-risk or hard-to-place exposures. Insurers cede risks to the facility according to agreed-upon rules, and the facility distributes the pooled risk and premium among its members or participating reinsurers. Examples include facilities for terrorism risk, such as the UK's Pool Re, or state-run windstorm reinsurance funds in coastal areas of the United States.",
  "url": "https://mlchart.com/terminology/insurance/reinsurance-facility/"
}