Återförsäkringsavtal

Återförsäkringsavtal is a Swedish term that translates to reinsurance agreement. It is a contract between an insurance company, known as the cedent, and another insurance company, known as the reinsurer. Under this agreement, the cedent transfers a portion of its insurance risks to the reinsurer in exchange for a premium. This practice allows primary insurers to manage their exposure to large or catastrophic losses, increase their underwriting capacity, and stabilize their financial results.

There are various types of reinsurance agreements, including facultative reinsurance, where individual risks are reinsured, and treaty reinsurance, which covers a portfolio of risks. Treaty reinsurance can be further categorized into proportional treaties, where the reinsurer shares a percentage of premiums and losses, and non-proportional treaties, where the reinsurer only pays losses that exceed a certain threshold.

The purpose of a reinsurance agreement is to protect the primary insurer from insolvency due to an accumulation of claims, such as those arising from natural disasters or major accidents. By sharing risk with reinsurers, insurers can underwrite more policies and offer coverage for a wider range of risks. This ultimately contributes to the stability of the insurance market and protects policyholders. The terms and conditions of an återförsäkringsavtal are crucial and are negotiated between the cedent and the reinsurer, outlining the responsibilities, premiums, and claims handling procedures.