- An insurer that takes on a portion of another insurer's (the ceding party's) insurance risk in exchange for a share of the insurance premiums.
reinsurance company, insurer
Related Terms and Acronyms
- Approved for Reinsurance — Definition,
- A company that is certified to provide reinsurance in a certain area.
- Ceding Party — Definition,
- In reinsurance, a ceding party is an insurance company that spreads liability to a reinsurer in order to lower risk.
- Direct Written Premiums — Definition,
- All the premiums written by an insurer except those ceded to reinsurers.
- Finite Reinsurance — Definition,
- A reinsurance arrangement where the reinsurer only takes on a limited amount of risk from the ceding party.
- Lloyd's of London — Company,
- A market for insurance and reinsurance based in London, England where Lloyd's members, underwriters and financial backers can spread and share risk.
- Reinsurance — Definition,
- The process of one insurance company sharing liabilities from an insurance policy with another insurance company in order to lessen exposure, or in other words, insurance for insurers.
- Reinsurance Ceded — Definition,
- The amount of insurance that is reinsured with another insurance company.
- Reinsurance Recoverables to Policyholder Surplus — Definition,
- A method used to determine how much an insurer relies on reinsurance.
- Underlying Retention — Definition,
- The liability an insurance company still retains after ceding liability to a reinsurer.