Question

What is retrocession?

a.

The process in which a ceding company transfers part of its risk to a reinsurer.

b.

The process in which a reinsurer transfers part of its risk to a ceding company.

c.

The process in which a reinsurer transfers part of its risk to another reinsurer.

d.

The process in which a policyholder transfers part of its risk to the insurer.

Posted under IC22 Life Insurance Underwriting

Answer: (c).The process in which a reinsurer transfers part of its risk to another reinsurer. Explanation:Retrocession is a process in which a reinsurer reinsures its risks with another reinsurer. Retrocession is the reinsuring of reinsurance.

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