What do reinsurance companies primarily accept?

Reinsurance companies primarily accept the financial risk of loss from primary insurance companies. This means that when a primary insurer issues policies to consumers and takes on the risk of paying claims, they can transfer part of that risk to a reinsurance company. This helps the primary insurer manage its risk exposure and protect itself against large or unexpected losses by sharing that burden.

Reinsurers essentially provide a safety net for insurers, allowing them to maintain financial stability and meet regulatory requirements while still providing coverage. By accepting this risk, reinsurance companies enable primary insurers to take on more policies than they would otherwise be able to handle on their own, thus promoting a more resilient insurance market overall.

The other options pertain to functions that are typically outside the purview of reinsurance firms; they do not engage directly with consumers regarding claim submissions or policy applications, nor do they handle administrative tasks related to the insurance process itself.