Glossary

Reinsurance confirmation refers to evidence of pro rata or excess of loss reinsurance.

Reinsurance credit is credit taken in an annual statement by a ceding insurer for reinsurance premiums ceded and for reinsurance losses recoverable.

A reinsurance facility is an unincorporated, nonprofit entity, through which auto insurers provide coverage and service claims. Two states—North Carolina and New Hampshire—use a reinsurance facility.

Reinsurance hedging strategy optimization is the determination of the optimal reinsurance/hedging program, reflecting program costs and risk reduction capability; usually conducted through candidate analysis.

Reinsurance intermediaries are brokers who act as intermediaries between reinsurers and ceding companies.

A reinsurance pool is a risk financing mechanism used by insurance companies to increase their ability to underwrite specific types of risks.

Reinsurance premium is the premium paid by the ceding company to the reinsurer in consideration for the liability assumed by the reinsurer.

Reinsurance recoverable refers to the amount of an insurer's incurred losses that reinsurers will pay.

A reinsurance sidecar is a limited purpose reinsurance company that provides insurers and reinsurers with alternative capital to reduce earnings and capital volatility developed in response to hurricanes and other catastrophes.

A reinsurance treaty is an agreement between an assuming and ceding company to cede and assume all risks within a class.