Reinsurers are companies that provide insurance to insurance companies. When an insurance company takes on a large risk, it may choose to transfer some of that risk to a reinsurer. This helps the insurance company manage its financial exposure and ensures it can pay claims even in catastrophic situations. Reinsurers play a crucial role in the insurance industry by stabilizing the market. They allow primary insurers to take on more policies and larger risks without jeopardizing their financial health. This process is essential for maintaining the overall balance and sustainability of the insurance market.