What Are The Challenges Faced By An Reinsurance Corporation?

Reinsurance in its essense is the the insurance of an insurance - ceding an already insured product (property or life) to another company so to transfer some or all the risk in case the claim is filed and has to be paid. In this case the companies rely on each other for accurate accounting documentation and appropriate accounting for the fees and expenses. The biggest challenge yet is to be sure not to reinsure something that has a definite and unavoidable chance of happening (such as catastrophic reinsurance).