Pro rata reinsurance

{
  "id": "MLC-T-INS-002684",
  "term": "Pro rata reinsurance",
  "field": "Insurance and risk management",
  "definition": "A form of reinsurance where the reinsurer shares a proportional part of the premiums and losses of the ceding insurer. The proportion is agreed upon in advance, often based on a percentage of the original policy's sum insured or premium. This arrangement contrasts with excess of loss reinsurance, where the reinsurer only pays losses exceeding a specified retention limit.",
  "url": "https://mlchart.com/terminology/insurance/pro-rata-reinsurance/"
}