Primary Insurer

Ceding Company: The Insurance Company that Transfers Risk to the Reinsurer
A ceding company is the primary insurer that transfers risk to a reinsurer by purchasing reinsurance. This process is crucial in risk management, ensuring stability and protection against large claims.
Reinsurer: The Company That Assumes Risk from the Primary Insurer
A reinsurer is an entity that provides reinsurance coverage, assuming part or all of the risk liability from primary insurers. This guide covers its definition, types, historical context, applicability, and related terms.

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