What Does Spread Loss Reinsurance Mean?

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

Spread Loss Reinsurance

Spread Loss Reinsurance

A form of reinsurance under which premiums are paid during good years to build up a fund from which losses are recovered in bad years. This reinsurance has the effect of stabilizing a cedent's loss ratio over an extended period of time.

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

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