9. Reinsurance reduces the number of insurance policies a client needs to buy:
To enumerate, if a client wants to insure a very expensive property against any calamities and no individual company is capable of taking on such huge risk. In such a scenario, the client would have to approach multiple insurance companies on his own and enter into various individual insurance agreements on the same property. This involves considerable cost; loss of valuable time and it slows down the pace of protection cover.
Reinsurance helps the client avoid so many deals and he is required to buy only one policy from only one insurance company.
10. Reinsurance safeguards the Insurance funds:
The insurance funds of the insurer are well protected due to reinsurance. Additional security and peace of mind is an added advantage of reinsurance for the insurer and the company that offers the insurance.