( Insurance : Reinsurance ) Retrocession
is the reinsuring of a risk
by a reinsurer.
A retrocession is placed to afford additional capacity to the original reinsurer, or to contain
or reduce the original reinsurer's risk of loss.
Reinsurance companies cede risks under retrocession agreements to other reinsurers, for reasons similar to those that cause primary insurers
to purchase reinsurance.
Retrocession is the reinsuring of a risk by a reinsurer.
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