Reinsurance ceded by an insurer, as opposed to inwards reinsurance accepted.
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UK: Reinsurance of Lloyd’s syndicates.
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The reinsurance of a syndicate or of an insurance company as distinct from inwards reinsurance.

The amount of insurance or reinsurance that exceeds the insurer’s or reinsurer’s normal capacity. This is inclusive of automatic reinsurance facilities.
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An amount of insurance or reinsurance that exceeds the normal capacity of the insurer or reinsurer after allowing for automatic reinsurance facilities. An insurer who finds himself with more risk than he considers it prudent to bear is said to be over lined.

Additional commission paid by a reinsurer to an insurer ceding proportional business, as a contribution towards expenses. The term is often used on primary business written through agents or brokers and refers to any addition to basic commission rates either for volume or profitable business.

A market for the reinsurance of a marine insurance where a ship is overdue or has suffered a serious casualty which may result in a total loss, and thus a means for original underwriters of quantifying, and possibly cutting, their loss.

REINSURANCE: 1) In reinsurance or retrocession business (typically proportional treaties) an allowance paid to the ceding company over and above the actual acquisition and related cost to produce and underwrite the original business.
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UK: 1. An additional commission payable to particular intermediaries who introduce a large volume of profitable business to the insurer. 2. Discount granted by a reinsurer to an intermediary or cedant to cover the cedant’s overhead expenses. To prevent a ceding office from writing business and reinsuring 100 per cent as a full-time activity for the sake of the underwriting commission, established reinsurers usually insist that the cedant retains a reasonable proportion of the business for their own account.
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A commission paid to an agent or broker on business sold by subagents in his or her territory. This term can also refer to an amount paid to a ceding company in addition to the acquisition cost to compensate for overhead expenses.
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A commission that is paid by a reinsurer to the reassured to cover the latter’s overheads in administering the reinsurance.
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UK: an allowance paid to a ceding company over and above the acquisition cost to allow for additional expenses.

A provision in a reinsurance treaty that either party may correct a failure to comply with the agreement due to oversight or misunderstanding.

A clause in a Marine Cargo reinsurance contract which stipulates either that war risks cover is subject to terms and conditions no wider than those of the relevant London Institute War Clauses or that the reinsured shall apply the limitations of the U.K. Waterborne Agreement; and that war risks shall be cancellable at seven days’ notice by either party.

A reinsurance term used to make it clear that the reinsurer is accepting part only of the risk covered by the original insurance and that in the event of a short closing he will not be saddled with the whole risk.
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UK: Reinsurance term indicating that the reinsurer is accepting part only of the original risk and making it clear that in the event of a short closing he will not be prepared to accept the whole of the risk.

These are contracts where in the event of a loss, the amounts payable by a Direct Insurer and the Reinsurer are in proportion which are arranged before the loss. In other words, under proportional Reinsurance there is a common apportionment between the Ceding Company and the Reinsurer of original sum insured, of premiums and of losses according to a pre-determined percentage. Includes Quota Share, First Surplus, Second Surplus and all other sharing forms of reinsurance where under the reinsurer participates pro rata in all losses and in all premiums.

A generic term describing all forms of quota share and surplus reinsurance in which the reinsurer shares a pro rata portion of the losses and premiums of the ceding company.