indexing, indexation
Indexing, or indexation, refers to the adjustment of a cedent's retention and the reinsurance limit by a measure of economic activity such as the consumer price index (CPI).
indexing, indexation
Indexing, or indexation, refers to the adjustment of a cedent's retention and the reinsurance limit by a measure of economic activity such as the consumer price index (CPI).
Additional Information
Under indexation, the cedent's original retention and the reinsurance limit are multiplied by the result of dividing the index on the settlement date by the index as of the effective date of the reinsurance agreement.
