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Level Risk Premium Renisurance

J

JamesCarlyle

Member
Can someone explain the cashflows that would go on in level risk premium reinsurance? Either for Individual surplus or quota share.

The reinsurer provides the cedant with a set of premium rates and the cedant loads their own costs into these rates. Presumably the cedant receives the full premium from the pholder and then pays a certain amount of each premium to the reinsure based on the reinsurers original rates and the proportion that is being reinsured.

Is that correct?

Thanks

James
 
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