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Investments glossary

Reinsurance Ceded

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Quotes of the day:

Those noble men who falsehood dread In wealth and glory ever grow, As flames with greater brightness glow With oil in ceaseless flow when fed.

— Sanskrit Proverb

Reinsurance ceded refers to the portion of risk that a primary insurer passes to a reinsurer. It allows the primary insurer to reduce its risk exposure to an insurance policy it has underwritten by passing that risk to another company. Primary insurers are also also referred to as the ceding company while the reinsurance company is also called the accepting company. In exchange for taking on the risk, the reinsurance company receives a premium, and pays the claim for the risk it accepts.


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