The reinsurance company is reinsuring one or more risks covered by a business casualty policy. The business casualty policy is typically issued in the jurisdiction where the insured business has its primary or home office. The reinsurance company is not a party to that primary insurance contract. The reinsurance company cannot issue a policy directly to the insured business.
The reinsurance company can only reinsure the risks of an existing insurance contract. This involves a contract between the insurance company (i.e. the insurer that issues the policy to the insured business) and the reinsurance company. The reinsurance transaction takes place in Turks and Caicos.