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Reinsurance contracts may be negotiated with a reinsurer or arranged through a third party; i.e., a reinsurance broker or intermediary. Reinsurers may also buy reinsurance protection, which is called retrocession. This is done to reduce any further spread risk and the impact of catastrophic loss events.
Direct brokers represent the clients and not the insurer. Unlike reinsurance brokers who represent both insurer and the insured, Direct Brokers act on behalf of and in the interest of their clients, that is, the end consumer.
Reinsurance intermediaries act as insurance producers in accepting any reinsurance contract or binder on behalf of an insurer. Congress enacted the federal Risk Retention Act (RRA) in 1981. This federal law enabled product sellers to form RRGs to provide group self-insurance.
Where insurance is transacted through an intermediary, that intermediary is usually either an insurance agent (who normally acts as an agent of a particular insurer or insurers) or an insurance broker (who normally acts as an agent of the insurance buyer).
A Reinsurance Intermediary-manager means any person, firm, association, or corporation that has authority to bind, or manages all or part of the assumed reinsurance business of, a reinsurer (including the management of a separate division, department, or underwriting office) and acts as an agent for the reinsurer
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The role of Insurance intermediaries is to evaluate the specific risks and insurance requirements of their clients. They consider the clients financial status, assets, liabilities, and prospective exposures to choose the best insurance coverage.
An Insurance Intermediary means individual agents, corporate agents including banks and brokers, insurance marketing firm. Insurance Intermediary also includes Surveyors and Third Party Administrators but these intermediaries are not involved in the procurement of business.
Reinsurance Broker means an insurance broker, registered by the Authority, who for a remuneration and/or a fee, solicit and arranges re-insurance for its clients with insurers or reinsurers with reinsurers and/or insurers located in India and/or abroad; and/or provides claims consultancy, Risk Management services or

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