1. The purchase of reinsurance by a reinsurance company. This limits the risk that a reinsurance company must face, since it has purchased insurance against an event that might affect a company that it had underwritten. If a reinsurance company continues to purchase insurance it might unknowingly buy back its own risk, known as "spiraling".
2. The voluntary act of returning property which had been previously "ceded" to its original holders. Examples include Washington, D.C. returning land to the state of Virginia in 1847, or the United Kingdom returning Hong Kong to China in 1997.
Related information about retrocession:
- Retrocession - Wikipedia, the free encyclopedia
Retrocession may refer to: the transfer of risk from a reinsurer to another reinsurer ; the return of something (e.g., land) that was ceded in general or, specifically: ...
- District of Columbia retrocession - Wikipedia, the free encyclopedia
District of Columbia retrocession is the process of returning the land that was given to the federal government for the original purpose of creating the national ...
- Retrocession Definition | Investopedia
1. The practice of one reinsurance company essentially insuring another reinsurance company by accepting business that the other company had agreed to ...
- Retrocession - The Free Dictionary
v. ret·ro·ced·ed, ret·ro·ced·ing, ret·ro·cedes. v.intr. To go back; recede. v.tr. To cede or give back (a territory, for example); return.
- retrocession - Legal Dictionary - The Free Dictionary
retrocession. Also found in: Dictionary/thesaurus, Medical, Wikipedia, 0.01 sec. See: decline, relapse, reversion. RETROCESSION, civil law. When the assignee ...
- What Is Retrocession?
The term "retrocession" is used in two very different ways. In the financial world, it refers to a situation in which one firm which specializes in reinsurance agrees ...
- What is retrocession? definition and meaning
Definition of retrocession: The purchase of reinsurance by a reinsurance company. This limits the risk that a reinsurance company must face, since it has ...
- retrocession - Insurance Glossary
retrocession - A transaction in which a reinsurer transfers risks it has reinsured to another reinsurer.