What does Reinsurance Ceded mean? Read on to discover the definition & meaning of the term Reinsurance Ceded - to help you better understand the language used in insurance policies.
Reinsurance ceded refers to a situation in which an insurance company (called the ceding company) transfers a risk or risks in a policy to another company (the reinsurer). The ceding company pays a premium to the reinsurer. The reinsurer pays the claim involving the ceded risk.
We hope the you have a better understanding of the meaning of Reinsurance Ceded.