REFERENCE: See: “Reinsurance, Cede.”
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REINSURANCE: The action of an insurer of reinsuring with another insurer or reinsurer the liability assumed through the issuance of one or more insurance policies by purchasing a contract that indemnifies the insurer within certain parameters for certain described losses under that policy or policies. This action is described as transferring the risk or a part of the risk from the insurer to the reinsurer. The insurer (the buyer) is called the cedent and the assuming company (the seller) is called the reinsurer.
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The transfer of all or part of a risk written by an insurer to a reinsurer.
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MEDICAL,USA: To buy reinsurance; to effect reinsurance.
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UK: to obtain reinsurance cover for insurance business, the company obtaining reinsurance is said to “cede” the business in question.
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UK: To purchase reinsurance.
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To transfer a risk exposure under a reinsurance contract.
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US: When a company reinsures its liability with another. The original or primary insurer, the insurance company that purchases reinsurance, is the “ceding company” that “cedes” business to the reinsurer.