REINSURANCE
Assumed reinsurance definition
Assumed reinsurance is reinsurance business accepted by an insurer or reinsurer from another insurance or reinsurance company.
In practice, this means reinsurance business or premium written by an insurer/reinsurer accepted from another insurer/reinsurer. This gives insurers, brokers, reinsurers and risk managers a shared way to discuss the concept when reviewing policies, claims, regulation or market data.
This term is especially useful in reinsurance, alternative risk transfer and risk financing. It helps users interpret insurance terminology consistently across markets, policies and risk data. It also helps users compare how insurance is structured, regulated, priced or claimed across different markets.
Assumed reinsurance is closely related to inward reinsurance, cession, cedant and retrocession. Linking these concepts together helps build a clearer glossary structure and gives readers a stronger understanding of how individual insurance terms connect within wider international insurance practice.
At a glance
- Used in
- Reinsurance, alternative risk transfer and risk financing.
- Purpose
- Helps users interpret insurance terminology consistently across markets, policies and risk data.
- Important because
- Clear definitions support better comparison of insurance products, market practices and regulatory requirements across jurisdictions.
- Related terms
- inward reinsurance, cession, cedant and retrocession.
Example of assumed reinsurance
A reinsurer accepts part of an insurer’s property portfolio. From the reinsurer’s perspective, that portfolio is assumed reinsurance because it has accepted risk from another insurer.