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How Reinsurance Ceded Helps Insurers Spread the Risk.

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Reinsurance ceded is insurance that an insurer purchases from another insurer to help spread the risk. The insurer who purchases the reinsurance is called the ceding company, while the insurer who sells the reinsurance is called the assuming company. Reinsurance ceded is often used by insurers to protect themselves from large losses. For example, if … Read more