Which type of insurer could help Xavier's company protect itself from potential losses due to natural disasters?

A re-insurer is an insurance company that provides financial protection to other insurance companies, allowing them to manage risk and mitigate potential losses, particularly from large-scale events like natural disasters. In Xavier's scenario, a re-insurer would enable his company to transfer some of the risks associated with natural disaster claims. By doing so, the primary insurer can maintain stability and ensure it has enough resources to cover claims without jeopardizing its financial standing.

This arrangement is essential during catastrophic events, where losses might exceed the capacity of individual insurers. The re-insurer absorbs a portion of these risks, essentially acting as a safety net for insurance companies, which allows them to write more policies and provide coverage with greater confidence.

Other types of insurers, such as reciprocal insurance groups, fraternal benefits societies, and stock insurers, have different structures and operational focuses that may not offer the same level of protection from large-scale losses due to natural disasters. For example, reciprocal insurance groups are often more community-oriented, while fraternal benefits societies are typically focused on members of specific social groups or organizations. Stock insurers generally operate for profit, which may influence their willingness to take on high-risk exposures like those associated with natural disasters without collaborating with a re-insurer.