What does Specific Reinsurance mean? Read on to discover the definition & meaning of the term Specific Reinsurance - to help you better understand the language used in insurance policies.
Specific reinsurance is a reinsurance method wherein each insurance policy is separately negotiated for reinsurance. Commonly, in specific reinsurance, the insurance bought by the cedent (buyer/insurance company) is usually coverage that is insufficiently covered or has excessive limits or individual risks not covered by the reinsurance treaties. By undergoing specific reinsurance, the reinsurer (seller/insurance company) can better price the contract to reflect the involved risks.
We hope the you have a better understanding of the meaning of Specific Reinsurance.