Assumed reinsurance

Can you elaborate on what assumed reinsurance is? Is it the amount of the reinsured's book that is subject to reinsurance?

Comments

  • Yes, but it also signifies which side of the contact concerning that amount you are. It is the business you record as being the reinsurer.

    "Direct" comes directly from the risk. "Assumed" comes from the insurer of the risk, where the insurer shares the risk with you via reinsurance. The same business is called "ceded reinsurance" from this sharing insurer's perspective.

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