The Concept of Reinsurance and Its Place in Insurance Activity
Reinsurance is an operation defined by the Law of Georgia on Insurance: in the course of such an operation the insurer, on the basis of a reinsurance contract and taking into account the specifics of each such contract, transfers the insurable risk and the related loss, wholly or partially, to a reinsurer company. Insurance activity, as defined by the same law, is the insurer's activity connected with the conclusion and performance of insurance and reinsurance contracts — reinsurance contracts are thus an ordinary instrument of the insurance market.