The reinsurance industry involves the sale of insurance to other insurance companies. Reinsurance companies provide coverage for a portion of the risk that other insurance companies have underwritten. This helps insurance companies manage the risks associated with providing insurance and can help them remain financially stable. Reinsurance companies typically specialize in providing coverage for large, complex risks, such as natural disasters and catastrophic events. By sharing the risk with reinsurance companies, primary insurance companies can better manage their exposure to losses and maintain their ability to pay claims to policyholders.