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📋 '''Reinsurance placement''' is the process through which a [[Definition:Ceding company | ceding company]] secures [[Definition:Reinsurance | reinsurance]] protection by presenting its risk profile to the [[Definition:Reinsurance market | reinsurance market]] and negotiating terms with one or more [[Definition:Reinsurer | reinsurers]]. It is the operational core of how [[Definition:Risk transfer | risk transfer]] between primary insurers and reinsurers actually gets done — encompassing everything from initial strategy design through marketing, negotiation, and binding of the [[Definition:Reinsurance contract | contract]].

🔧 A typical placement begins well before renewal season. The cedent and its [[Definition:Reinsurance broker | reinsurance broker]] collaborate to analyze the portfolio's [[Definition:Loss experience | loss experience]], project future [[Definition:Exposure | exposures]], and model various program structures — deciding on [[Definition:Retention | retention]] levels, [[Definition:Attachment point | attachment points]], layer sizes, and whether to use [[Definition:Quota share reinsurance | proportional]] or [[Definition:Excess of loss reinsurance | excess of loss]] structures. The broker then assembles a [[Definition:Reinsurance submission | submission]] package and approaches target reinsurers, starting with the prospective [[Definition:Lead reinsurer | lead market]] whose indicated [[Definition:Reinsurance rate | pricing]] and [[Definition:Terms and conditions | terms]] will anchor the placement. Once the lead agrees, the broker fills out the remaining [[Definition:Reinsurance capacity | capacity]] with following markets. Each reinsurer's participation is documented on a [[Definition:Reinsurance slip | slip]] or equivalent, and the placement is considered complete when the full program is bound. Multi-layered programs may involve dozens of reinsurers across several geographic markets.

🚀 How well a placement is executed has direct financial consequences for the cedent. A skillfully structured and broadly marketed placement can yield lower [[Definition:Reinsurance cost | reinsurance costs]], more favorable terms — such as wider [[Definition:Coverage | coverage]] triggers or more generous [[Definition:Reinstatement | reinstatement]] provisions — and a diversified panel of reinsurers that reduces [[Definition:Counterparty risk | counterparty concentration risk]]. Poorly managed placements, by contrast, may leave gaps in coverage, concentrate exposure with a small number of reinsurers, or result in last-minute scrambles that weaken the cedent's negotiating position. The rise of [[Definition:Insurtech | insurtech]]-powered placement platforms is beginning to bring greater transparency and efficiency to the process, allowing brokers and cedents to compare quotes, track capacity in real time, and reduce the manual overhead that has long characterized reinsurance transactions.

'''Related concepts'''
{{Div col|colwidth=20em}}
* [[Definition:Reinsurance broker]]
* [[Definition:Reinsurance submission]]
* [[Definition:Lead reinsurer]]
* [[Definition:Reinsurance slip]]
* [[Definition:Treaty reinsurance]]
* [[Definition:Facultative reinsurance]]
{{Div col end}}

Definition:Reinsurance placement - Revision history

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