A risk management strategy where insurance companies transfer a portion of their risk to other insurers (reinsurers) to protect themselves against large financial losses.
The primary insurance company that transfers a portion of its risk to a reinsurer through a reinsurance agreement.
An insurance company that agrees to assume a portion of the risk from a ceding company in exchange for premiums.
A long-term, ongoing agreement between a ceding company and a reinsurer to cover a specific category or portfolio of risks.
A case-by-case reinsurance arrangement where the ceding company negotiates with the reinsurer for coverage on individual risks.
The process by which a reinsurer transfers a portion of the risk it assumed to another reinsurer, forming a chain of risk-sharing.
The evaluation of potential risks and exposures by both ceding companies and reinsurers to determine appropriate reinsurance coverage and pricing.
The process of assessing and accepting risks by insurers and reinsurers, including the determination of premiums and policy terms.
Coverage that protects an insurance company from large-scale losses resulting from catastrophic events, such as natural disasters or major accidents.
An arrangement where the ceding company and the reinsurer share a predetermined percentage of each insurance policy and its associated risks.
A type of reinsurance that covers losses exceeding a specified limit, providing additional protection against catastrophic events.
The practice of combining and spreading risks among multiple insurers or reinsurers to reduce the impact of individual large losses.
Reinsurance coverage for policies that have expired or been canceled, but still have potential for claims, allowing the ceding company to manage its legacy liabilities.
A financial structure where a reinsurer creates a separate entity to raise capital specifically for covering a particular set of risks.