Skip to main content
Glite Dictionary
🔙 Return to owner 💼 Risk transfer
retrocession

retrocession

9.9
The transfer of risk from one reinsurer to another
  • noun
  • /ˌrɛtrəˈsɛʃən/
  • Specialized
translation icon : retrocesión
  • The reinsurer arranged a retrocession to limit its exposure after several large catastrophe claims.

Examples

  • International markets often use retrocession to spread risk among multiple companies.

  • A retrocession agreement can help stabilize a reinsurer's financial position after major losses.

  • A retrocession is essential for managing risk.

  • The retrocession was beneficial for both companies involved.

  • The reinsurer arranged a retrocession to limit its exposure after several large catastrophe claims.

  • International markets often use retrocession to spread risk among multiple companies.

  • A retrocession agreement can help stabilize a reinsurer's financial position after major losses.

Synonyms

reinsurance
vsretrocession
  • Specialized
5 7.8

When an insurance company buys cover from another company to share large losses

involves a company that already took on risk passing it to another similar company

Surface Forms

retrocession singular
retrocessions plural

Morphology

retrocession = cession (semi-transparent) = retro + cession

Morphologically regular ('retro-' + 'cession'), but the meaning in reinsurance is a specialized technical extension of 'giving up/transfer'.

Etymology

Retrocession comes from retro- 'back' and -cession 'giving up', the same idea you see in concession. So in insurance a retrocession is when a reinsurer, a company that insures other insurance companies, 'gives back' part of the risk to another company to reduce its losses.