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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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Water Act 2014: Legal overview of competition and retail exit, licensing, Ofwat and CMA powers, resilience planning, sustainable abstraction, environmental permitting, and Flood Re

Practice notes
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Summary of the Water Act 2014

The Water Act 2014 (WA 2014) aimed to overhaul the water sector, encouraging innovation, improving responsiveness to customers, and boosting resilience to natural hazards such as droughts and floods. It introduced Flood Re, an industry‑led flood reinsurance scheme that limits premiums for households facing high flood risk. WA 2014 amends the Water Industry Act 1991 (WIA 1991) and also updates other legislation, including the Water Resources Act 1991 (WRA 1991). The Act comprises six parts, totalling 95 sections and 12 schedules, arranged as follows:

  • Part 1—Water industry, with 4 chapters
  • Part 2—Water resources
  • Part 3—Environmental regulation
  • Part 4—Flood insurance
  • Part 5—Miscellaneous
  • Part 6—General and final

Part 1—water industry

Chapter 1—water supply licences and sewerage licences (sections 1–7 and schedules 1–5)

This chapter amends the WIA 1991 by widening the water supply licensing regime, introducing new sewerage licences, and establishing a cross‑border retail market covering England, Wales and Scotland...

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Web page updated on 22/05/2026

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