Our glossary explains technical terms from the areas finance and reinsurance. We hope it facilitates the understanding of our texts, publications and annual reports. If you have comments or suggestions, please use our feedback form!
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Rate
percentage rate (usually of the premium income) of the reinsured portfolio which is to be paid to the reinsurer as reinsurance premium under a non-proportional reinsurance treaty.
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Reinsurance
passing on of a primary insurer’s or reinsurer’s risks to a reinsurer.
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Reinsurer
company which accepts risks or portfolio segments from a direct insurer or another reinsurer in exchange for an agreed premium.
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Reserve ratio
ratio of (gross or net) technical provisions to the (gross or net) premiums.
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Retakaful
reinsurance in accordance with Islamic law (Sharia-compliant). The business model is similar in form to that of mutual insurance and addresses, among other things, the prohibition of interest in Islam.
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Retention
the part of the accepted risks which an insurer/reinsurer does not reinsure, i. e. shows as net (retention ratio: percentage share of the retention relative to the gross written premiums).
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Retrocession (also: Retro)
ceding of risks or shares in risks which have been reinsured. Retrocessions are ceded to other risk carriers (retrocessionaires) in exchange for a pro-rata or separately calculated premium (cf. Gross / Retro / Net).
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Risk, insured
risk that can lead to the occurrence of a loss. The insured risk is the subject of the insurance contract.
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Risk capital
the capital at risk notionally allocated to a risk category
