Your Gateway to Financial Literacy
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
Read more
Introduction to Quota Share Treaties A quota share treaty represents an essential component of pro-rata reinsurance contracts, enabling insurers to distribute risks and premiums proportionally with a reinsurer up to a predefined maximum coverage limit. This financial instrument allows the primary insurer to retain some level of risk while benefiting
Read more
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
Read more