// definition
Retrocession
Reinsurance purchased by a reinsurer
Short definition
Reinsurance through which a reinsurer cedes part of the risks it has itself accepted. The cedent is called the retrocedent and the counterparty the retrocessionaire. The contract’s cover, limits and conditions determine the losses transferred and obligations retained.
risk atlas
Knowledge map
Intuition
Another counterparty joins the chain without creating another underlying loss.
Related analyses
Primary sources
- IAIS, Insurance Core Principles, December 2024ICP 13.0.7: retrocedents and retrocessionaires; ICP 13.2: counterparties and matching cover.
- NAIC, ReinsuranceDefines retrocession as reinsurance purchased by a reinsurer.