The broader domestic insurance industry is comprised of primary and secondary insurance companies. Primary insurers are the companies that an individual would employ to cover their life, car, house, etc. Secondary insurers, or reinsurers, are employed by primary insurance companies to establish a cap on how much claims exposure they will have in any single catastrophic event. Much like a primary insurance company, the reinsurer is paid a premium, or fee, for their willingness to take on this risk. The reinsurance company invests these premiums with the aim of gaining a solid return.