One of the features of reinsurance is the

The feature of reinsurance is the transfer of a portion of risk from one insurance company to another. Reinsurance allows an insurance company to transfer some of the risk it has assumed from its policyholders to another company. This helps the insurance company to reduce its exposure to large or catastrophic losses, and to maintain its financial stability. In exchange for accepting some of the risk, the reinsurer charges a premium to the insurer. Reinsurance helps to spread risk among multiple companies, which can help to stabilize the insurance industry as a whole.