If an insurer contracts with other insurance companies to share some of the risks of insurance underwriting in return for a share of some of the first insurer's premium income this is known as:

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Reinsurance is the practice where an insurer (the ceding company) arranges to transfer part of its risk portfolios to other parties (reinsurers) to reduce the likelihood of paying a large obligation resulting from an insurance claim. This process allows the original insurer to take on more risk because it knows that part of that risk is covered by the reinsurers.

If an Insurer Contracts with Other Insurance Companies to Share