| Term / Término | Definition |
|---|
| Cedant · Cedente | The insurer transferring risk to a reinsurer. |
| Retention / Priority · Retención / Prioridad | The loss amount the cedant keeps before reinsurance responds. |
| Attachment point · Punto de enganche | The threshold above which an excess-of-loss layer begins to pay. |
| Limit · Límite | The maximum the reinsurer pays on a layer or contract. |
| Quota share · Cuota parte | Proportional cover ceding a fixed percentage of every risk. |
| Surplus · Excedente | Proportional cover ceding the amount above a retained line. |
| Excess of loss (XoL) · Exceso de pérdida | Non-proportional cover paying losses above a retention up to a limit. |
| Stop-loss · Stop-loss | Aggregate cover capping total losses over a period. |
| Rate on line (ROL) · Tasa sobre línea | Layer premium divided by layer limit. |
| Ceding commission · Comisión de cesión | Commission the reinsurer pays the cedant on ceded premium. |
| Profit commission · Comisión de utilidad | A share of favorable treaty experience returned to the cedant. |
| Retrocession · Retrocesión | Reinsurance purchased by a reinsurer. |
| Burning cost · Burning Cost | Historical losses divided by exposure, used to price a layer. |
| Exposure rating · Tarificación por exposición | Pricing using exposure curves / ILFs rather than own experience. |
| Experience rating · Tarificación por experiencia | Pricing from the cedant's own historical loss experience. |
| Reinstatement · Reinstalación | Restoring an exhausted XoL limit, usually for an additional premium. |
| Combined ratio · Ratio combinado | Losses plus expenses divided by premium; below 100% is an underwriting profit. |
| Clash · Clash | When a single event triggers losses across multiple policies or lines. |
