Reinsurance market research services help insurance companies understand the costs and benefits of allowing another company to absorb some of their insurance risks. By purchasing a reinsurance plan a company shares the premiums and profits but also shares the cost of large claims.

Reinsurance—insurance provided for insurance companies to protect against risks such as earthquakes, tornadoes, hurricanes, lawsuits and accidents—spreads the risk between multiple entities, lessening the chance of bankruptcy and instability.

Insurance companies use reinsurance marketing research to:

1. Transfer risk, allowing you to offer higher protection to policy holders because another party is sharing in the risk.

2. Ensure that a couple large claims won't bring down the entire company. Small companies may be the primary target audience for reinsurance.

3. Stabilize the insurance business by limiting the amount of large swings in profits and losses.

4. Protect against a catastrophe such as a hurricane or fire. Reinsurance market research firms show how to plan against catastrophes affecting large or multiple policies.

Action Steps
The best contacts and resources to help you get it done

Search online for market research in reinsurance

Find reports, analyses, news articles and other market research for reinsurance industries online. Learn the various types of contracts an insurance company may have with an reinsurance provider--such as quota share, surplus, excess loss, catastrophe excess loss and aggregate--and keep up with the current trends and news.

I recommend: Search the Reinsurance Association of America website for current market reports and information about the industry's current happenings. The Bermuda: Re magazine offers articles focused on the insurance and reinsurance world market, while Global Reinsurance gives industry comment and analysis of the market.

Find reinsurance market research firms

Look for reinsurance market research firms and reinsurance agencies that can help you learn more about the reinsurance process. Consider firms that deliver results and agencies that offer clearly spelled out contracts so there's no confusion about your partnership commitments.

I recommend: Read about reinsurance from the Munich American Reassurance Company before you sign a contract. Contact representatives from firms like Transamerica Reinsurance and U.S. RE to discuss possible partnership among specific insurance industries.

Invest in reinsurance marketing research firms

If you don't own an insurance company and your focus is more on investing in new areas, consider reinsurance industry market research to help you find the right reinsurance company stock.

I recommend: View the Transatlantic Holdings, Inc. stock information listed on the company's website to start to get a feel for the value. Check indexes on Yahoo Finance and NASDAQ, focusing on reinsurance symbols like MHR, RGA, FSR, WIL.BE, AMBGR and DJUSIU. When you're ready to begin trading, consult E*TRADE OR TD AMERITRADE to invest online at your convenience.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Use market research in reinsurance to re-evaluate your partnership with a reinsurance company. Look at other companies and take note of how your contract compares to what you could have with another broker.