A list of additional reinsurance contracts that are initially implemented in accordance with the conditions of a certain reinsurance agreement in order to lessen the loss covered by that specific reinsurance agreement.

These additional “inuring” reinsurances essentially insure the specific reinsurance contract they insure. It is argued that the other reinsurances only benefit the reinsured if they are to be ignored in regards to loss under that specific arrangement.

For instance: A ceding insurer has a per occurrence excess of loss contract (catastrophe reinsurance) for £80 million over £20 million and a 50% quota share agreement. There is a £100 million disaster loss.

In the event that the quota share contract benefits the catastrophe reinsurer, the ceding insurer bears the £20 million catastrophe retention, the catastrophe reinsurer reimburses the ceding insurer to the extent of £30 million, and the quota share reinsurer receives the first £50 million of the £100 million gross loss.

The catastrophe reinsurer would have suffered a loss of £80 million following the ceding insurer’s £20 million retention, and the QS cession would have applied to the remaining £20 million, netting the cedent’s loss to £10 million, had the quota share not inured to the catastrophe reinsurer’s benefit.