Reinsurance
Understanding how Atlanta Life enters markets, builds relationships, and delivers solutions to the organizations we serve.
What is Reinsurance
Reinsurance is a practice in which one insurance company — known as the reinsurer — assumes a portion of the risk carried by another insurance company, known as the ceding company or carrier. In exchange for assuming that risk, the reinsurer receives a portion of the premiums the carrier collects from its policyholders.
In the United States, reinsurance is a foundational mechanism of the insurance industry. It allows carriers to manage their exposure, stabilize their financial performance, and expand their capacity to serve more policyholders. For the policyholders themselves — the individuals, families, and organizations holding insurance policies — the reinsurance arrangement operates in the background and does not affect their coverage or their relationship with their carrier.
Reinsurance agreements are formal contracts, commonly referred to as reinsurance treaties, that define the terms of the risk-sharing arrangement between the carrier and the reinsurer — including the percentage of risk assumed, the premiums shared, and the conditions under which claims are handled.
How it Works at Atlanta Life
Atlanta Life participates in the group life insurance market through reinsurance. Rather than issuing group life insurance policies directly, Atlanta Life enters into reinsurance agreements with the carriers that do — assuming a defined portion of the risk those carriers hold on behalf of their group clients.
Those group clients — corporations, government agencies, educational institutions, and other organizations — maintain their existing relationship and coverage with their carrier. Atlanta Life’s role in the arrangement is separate from and does not alter that relationship or the benefits those organizations provide to their people.
What the reinsurance agreement does create is a connection — between Atlanta Life and the organizations those carriers serve. Through that connection, Atlanta Life is able to extend the solutions and resources of the LiveBalanced™ platform directly to those organizations, as a complement to the group life coverage their carrier already provides.
This is how Atlanta Life brings its mission to scale — entering markets through the credibility of established carrier relationships and delivering meaningful solutions to the organizations and people on the other side of those relationships.