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United Kingdom
United Kingdom
Key definition
Reinsurance definition What does Reinsurance mean? Reinsurance is the transfer by an insurer (the cedant) of part of its insurance risk to another insurer (the reinsurer) under a separate contract, to manage exposure, protect capital and satisfy prudential requirements. While regulatory definitions exist (for example under Solvency II and UK financial services legislation), the term is chiefly a contractual and market expression developed through practice and case law. Key structures include: - Proportional reinsurance (such as quota share or surplus), where premiums, losses and expenses are shared at an agreed percentage. - Non‑proportional reinsurance (such as excess of loss or stop loss), which responds once the cedant’s retention/attachment point...
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Back-to-back reinsurance placements: brokers’ duties, conflicts, structuring reinsurance programmes, liability risks and drafting to secure ‘as original’ cover, with guidance from Vesta, Wasa, Aneco and SuperHulls
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Practice notes
Practice Note
This Practice Note offers a concise overview of the function of reinsurance brokers when arranging reinsurance intended to operate ‘back-to-back’ with the base policy market-wide. It explains how the obligations owed by reinsurance brokers diverge from those of brokers placing only direct insurance arrangements. It sets out guidance on potential conflicts of interest arising when arranging back-to-back reinsurance, and highlights risks and typical errors that could prompt claims against brokers operating in a dual role within such placements. This Practice Note further offers practical pointers on how brokers may avoid or reduce negligence claims, and includes links to associated materials for readers elsewhere. The expression ‘direct’ is used within insurance and reinsurance placement contexts to denote cover for the original policyholder, as distinct from reinsurances of that underlying risk in question specifically. The term ‘direct’ should not be mistaken for ‘primary’, which describes the first layer of a non-proportional insurance or reinsurance programme structure. For further detail on reinsurance types and terminology, see Practice Note: Reinsurance—essentials—Facultative reinsurance and treaty reinsurance for comprehensive background and context. For information about the role and duties of direct insurance brokers, see Practice Note: The functions and duties of insurance brokers—policy placement. For...
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Web page updated on 21/05/2026
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I, [ name ], of [ address ], solemnly and sincerely state that: [ Matters to be verified, set out in numbered paragraphs ] I make this solemn statement in good conscience, believing it to be true, and pursuant to the provisions of the Statutory Declarations Act 1835. DECLARED at [ details ] this [ day ] day of [ month and year ] Before me ................................................................................ [ signature of the person before whom the declaration is made ] A [ commissioner for oaths OR [ solicitor OR [ insert other qualification ] ] authorised to administer oaths ]...
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