Credit shown on the annual statement of a ceding insurer for premiums on business ceded to a reinsurer and recoverable losses.
Tag: RAW
Reinsurance facility
An alternative mechanism to service those insureds that cannot obtain insurance in the voluntary market. Premiums and losses for the business that is ceded to the facility are pooled and all insurers share according to their proportion of the voluntary market.
Reinsurance Home Office Expense (RHOE)
See: Management Fee Expense, Reinsurer’s Expense.
Reinsurance or reassurance
the insurance of the risks assumed by or potential losses of another insurer (the direct insurer) whereby the latter covers a proportion of the risks assumed or the eventuality of atypically large losses (see also retrocession).
Reinsurance Order
Instructions to a broker requesting him to effect a Reinsurance contract.
Reinsurance pool
a group of reinsurers who agree to share certain types of business in specified proportions (such a pool is sometimes operated by way of cession and retrocession).
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A multi-reinsurer agreement under which each reinsurer in the group or pool assumes a specified portion of each risk ceded to the pool. Contrast with Reinsurance wheel.
Reinsurance pools
An organisation of reinsurers through which particular types of risk (e.g. certain categories of sub-standard lives seeking life cover) are underwritten with premium losses and expenses shared in agreed proportions. Pooling creates the advantage of averaging over a large number of similar risks.
Reinsurance Premium
The consideration paid by a ceding company to a reinsurer for the coverage provided by the reinsurer.
Reinsurance premium (Reinsurance)
An amount paid to a reinsurer by the ceding insurer, in exchange for the reinsurance provided.
Reinsurance to close
An agreement under which Lloyd’s underwriting members who are members of a syndicate for a year of account to be closed are reinsured by underwriting members who comprise that or another syndicate for a later year of account against all liabilities arising out of insurance business underwritten by the reinsured syndicate. The practice will end when Lloyd’s moves to GAAP accounting.