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Definition and Overview of Reinsurance Ceded Reinsurance ceded refers to the portion of an insurance risk that one company—the ceding company—transfers to another firm, called the reinsurer. Through this arrangement, the primary insurer offloads some of its risks in exchange for a premium paid by the accepting company. Reinsurance allows
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What Is Facultative Reinsurance? Facultative reinsurance is an essential aspect of risk management for insurance companies. This form of reinsurance allows insurers to transfer individual risks or blocks of risks to a reinsurer. By doing so, the primary insurer gains more security and stability in its book of business. Facultative
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