What Does Participating Reinsurance Mean?

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What does Participating Reinsurance mean? Read on to discover the definition & meaning of the term Participating Reinsurance - to help you better understand the language used in insurance policies.

Participating Reinsurance

Participating Reinsurance

A generic form of reinsurance under which the reinsurer and primary insurer share losses in the same proportion as they share premiums and policy limits. Quota share reinsurance and surplus share reinsurance are the two types of participating reinsurance. Pro rata reinsurance is another term often used to describe participating reinsurance.

We hope the you have a better understanding of the meaning of Participating Reinsurance.

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