Surplus reinsurance

{
  "id": "MLC-T-INS-003255",
  "term": "Surplus reinsurance",
  "field": "Insurance and risk management",
  "definition": "A form of proportional reinsurance where the ceding insurer retains a fixed amount of liability for each risk, and the reinsurer covers the excess amount, up to a specified limit. This arrangement allows the ceding insurer to write larger policies than its own financial capacity would otherwise permit. The premium and losses are shared between the ceding insurer and the reinsurer in proportion to their respective shares of the risk.",
  "url": "https://mlchart.com/terminology/insurance/surplus-reinsurance/"
}