Meaning of the term "Ceding Company" in Insurance - NEPAL MONETARY SOLUTIONS (NMS)

Breaking

Monday, March 3, 2014

Meaning of the term "Ceding Company" in Insurance

Ceding Company:-

An insurance company that shifts part or all of a risk it has assumed to another insurance company. The Ceding company shares the premium amount it has received to cover the risk, with the second insurance company called the Reinsurer. In return, the Reinsurer company pays commission to the Ceding company for getting the business.

No comments:

Post a Comment