A reinsurance expression signifying that the reinsurance is granted on the same conditions and at the same rate of premium as the original insurance.
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UK: reinsurance granted on the same conditions and the same rate of premium as the original insurance.

A method of funding by the reinsurer using a cash advance in connection with a securitization provision contained in a reinsurance agreement requiring the reinsurer to secure its outstanding obligations under the agreement as of a particular point in time. The cash advance is held by the company in trust for the reinsurer in an interest bearing account or invested by the company in acceptable securities. The amount of the cash advance is subject to adjustment at given intervals as the reinsurer’s obligations change, as defined in the securitization provision. Generally, should the reinsurer fail to perform its payment obligations under the reinsurance agreement, the company may utilize the outstanding cash advance to meet such obligations. Also see Trust and Unauthorized Reinsurance.

A reinsurance treaty may provide that if claims payable by the reinsurer exceed the reserve held by the original insurer for the payment of claims the reinsurer shall make an immediate payment, or advance, without waiting for the claims to appear in the periodic statements.
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UK: A payment made under a reinsurance contract or treaty whereby an advance payment is made in respect of outstanding claims that will come into account in a subsequent periodic settlement when the actual claim amount has been determined.

An amount payable by a cedent to a reinsurer in consideration of the reinsurer accepting liability arising under a contract of reinsurance in respect of reinsurance claims incurred and arising prior to a fixed date.

For an individual claim, an estimate of the amount the insurer expects to pay for the reported claim, prior to the final settlement of the claim. For total claims , estimates of expected payments for all reported and unreported claims. May include amounts for loss adjustment expenses. See Incurred But Not Reported (IBNR), Incurred Losses and Loss Development.

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.