https://www.insurerbrain.com/w/index.php?action=history&feed=atom&title=Definition%3ACo-reinsuranceDefinition:Co-reinsurance - Revision history2026-05-03T05:05:29ZRevision history for this page on the wikiMediaWiki 1.43.8https://www.insurerbrain.com/w/index.php?title=Definition:Co-reinsurance&diff=20758&oldid=prevPlumBot: Bot: Creating new article from JSON2026-03-18T03:26:51Z<p>Bot: Creating new article from JSON</p>
<p><b>New page</b></p><div>🤝 '''Co-reinsurance''' is an arrangement in which two or more [[Definition:Reinsurer | reinsurers]] jointly assume a single [[Definition:Reinsurance | reinsurance]] obligation from a [[Definition:Cedent | cedent]], each taking a defined percentage share of the risk, [[Definition:Premium | premium]], and [[Definition:Claim | losses]]. Unlike a situation where a cedent places separate contracts with independent reinsurers covering distinct layers, co-reinsurance involves multiple parties participating on the same contract or [[Definition:Reinsurance slip | slip]], sharing one set of terms and conditions. The structure is prevalent in the [[Definition:Lloyd's of London | London market]], large Continental European placements, and major [[Definition:Catastrophe reinsurance | catastrophe programs]] placed through hubs such as Singapore and Bermuda.<br />
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⚙️ A typical co-reinsurance placement begins with the cedent or its [[Definition:Reinsurance broker | reinsurance broker]] approaching a lead reinsurer to establish pricing, wording, and key terms. Once the lead commits to a share — say 25% of the layer — the broker markets the remaining capacity to following reinsurers, each of which subscribes for a stated percentage on identical terms. The lead reinsurer usually assumes administrative responsibilities such as processing [[Definition:Bordereaux | bordereaux]], handling [[Definition:Claims adjustment | claims adjustments]], and communicating with the cedent on behalf of the panel. Each co-reinsurer's liability is several, not joint, meaning no participant is responsible for another's share if one defaults — a critical distinction that separates co-reinsurance from arrangements involving [[Definition:Joint and several liability | joint and several liability]]. Subscription-style placement through platforms like the London market's [[Definition:Placing Platform Limited (PPL) | PPL]] has streamlined how co-reinsurance shares are documented and bound.<br />
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📊 The practical importance of co-reinsurance lies in its ability to distribute large or complex risks across many balance sheets, enabling cedents to secure [[Definition:Reinsurance capacity | capacity]] that no single reinsurer could or would provide alone. This is especially vital for [[Definition:Peak peril | peak perils]] — such as Japanese earthquake, U.S. hurricane, or European windstorm — where individual reinsurer appetite is constrained by [[Definition:Probable maximum loss (PML) | PML]] limits and [[Definition:Regulatory capital | capital]] considerations. For reinsurers, co-reinsurance offers portfolio diversification and the ability to calibrate exposure precisely through share size. The structure also introduces [[Definition:Credit risk | credit risk]] management considerations for cedents, who must evaluate the financial strength of each co-reinsurer and may incorporate [[Definition:Collateral | collateral]] requirements or favor counterparties with strong [[Definition:Financial strength rating | financial strength ratings]].<br />
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'''Related concepts:'''<br />
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* [[Definition:Reinsurance]]<br />
* [[Definition:Treaty reinsurance]]<br />
* [[Definition:Subscription market]]<br />
* [[Definition:Lead reinsurer]]<br />
* [[Definition:Several liability]]<br />
* [[Definition:Reinsurance capacity]]<br />
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