Proportional reinsurance

{
  "id": "MLC-T-INS-002731",
  "term": "Proportional reinsurance",
  "field": "Insurance and risk management",
  "definition": "A type of reinsurance where the reinsurer assumes a predetermined percentage of the ceding insurer's premiums and losses for a specific book of business. The proportion is established in the reinsurance treaty, often based on the original policy's exposure or premium. This arrangement differs from non-proportional reinsurance, where the reinsurer's liability is triggered only after losses exceed a certain threshold.",
  "url": "https://mlchart.com/terminology/insurance/proportional-reinsurance/"
}