Credit for reinsurance

{
  "id": "MLC-T-INS-001022",
  "term": "Credit for reinsurance",
  "field": "Insurance and risk management",
  "definition": "The ability of a ceding insurer to reduce its statutory liabilities by the amount of reinsurance ceded to an authorized reinsurer. This reduction in liabilities improves the ceding insurer's financial solvency ratios and capital requirements. Regulators establish specific rules and requirements, such as the reinsurer's financial strength and domicile, for an insurer to claim credit.",
  "url": "https://mlchart.com/terminology/insurance/credit-for-reinsurance/"
}