Co-Reinsurance

What is Co-Reinsurance?

Co-Reinsurance is A co-reinsurance warranty may be imposed by some reinsurers on some catastrophe, excess of loss, and stop loss reinsurance contracts. The principal of the imposition is to require the reinsured to retain, net and unprotected, a pre-determined percentage of the reinsurance layer in order to ensure that the reinsured maintains an economic interest in the loss settlement once the deductible has been exceeded. Accordingly, the reinsured becomes its own reinsurer for that percentage of the layer.

 

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