Non proportional reinsurance

Discussion in 'CP1' started by gch17, Nov 24, 2019.

  1. gch17

    gch17 Made first post

    When a cedant has to retain a proportion of risk within a layer, what exactly does this mean?
  2. GemmaHayes

    GemmaHayes Active Member

    This is when the non proportional layer that we cede to the reinsurer is shared proportionally with the cedant so as to encourage good claims handling by the cedant. E.g A 1m layer that they have both protection for may have a 20% retention so that the cedant still has a potential risk of 200k on the layer. I hope this is clear :)

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