Retrocession Agreement Reinsurance

A specific retrocession can only be an isolated risk or a carefully defined set of risks, structured as proportional or excess reinsurance. A flat-rate retrocession covers the entire net portfolio of the initial reinsured (i.e. net less specific retrocession protection) and is normally structured as excess reinsurance, distinctly by main activity (i.e. insurance in kind, accidents, maritime, aeronautics, accidents and health). The formula of a reinsurance contract to determine the reinsurance premium for a specified period on the basis of the claim experience for the same period (unlike the prospective rating based on the experience of claims for a previous period). Also known as Experience Rating. If you haven`t figured it out yet, insurance, reinsurance, and retrocession insurance are complex topics that can often be confusing for those who aren`t in the business. Reading and understanding your policy can be a sufficient challenge. Understanding who was actually taking risks and paying your claim in case of property damage can be a blobing of thought…