Why it is used
It manages the reinsurer's accumulations, capital, volatility, and catastrophe exposure.
Reinsurance Intelligence · Reinsurer protection
All conceptsRetrocession
Retrocession is reinsurance purchased by a reinsurer for risks it has assumed.
Illustrative example
A global reinsurer buys retrocession protecting multiple catastrophe treaties from a major regional event.
Programme questions
- Counterparty concentration
- Basis and aggregation risk
- Collateral and recoverability
Educational overview only. Reinsurance effect depends on the complete contract, programme structure, accounting basis, law, facts, and counterparties. The original insurer normally remains responsible to its policyholder.