The transaction when a reinsurer (the retrocedant) reinsures parts of his risks (the retrocession) with another reinsurer (the retrocessionaire).

Liability policy extension bringing within a losses-occurring policy on a claims-made basis bodily injury or damage caused prior to the inception of the policy but for which no previous policy can be traced. ‘Retro’ cover closes gaps in the insured’s insurance history but does not respond to shortfalls in cover in traced insurances. ‘Retro’ cover should embrace the insured’s previous activities as the current business description may not apply.

Finite risk cover for IBNR losses under which the reinsured pays a premium for the (partial) assumption of losses that exceed the accumulated reserves. Contracts may be structured as: stop loss treaties, working excess of loss treaties or catastrophe excess of loss basis.