20th Century Reinsurance Market

The 20th-century reinsurance market refers to the system where insurance companies purchase their own insurance to protect against large losses. This helps insurers manage risk, especially after major disasters. Reinsurers provide financial backing, allowing primary insurers to take on more policies without jeopardizing their stability. The market grew significantly throughout the century due to increasing awareness of risks, globalization, and the rise of complex financial instruments. Key events, like natural disasters and economic crises, shaped regulations and practices, ultimately leading to a more structured and specialized reinsurance industry.