Special Retrocession

Special retrocession by means of which the reinsurer arranges in advance the retrocession of his accepted share (possibly as a supplement to obligatory retrocession).

Special retrocession normally occurs by means of the cedant giving his reinsurance 100% to the reinsurer.

If the reinsurer either cannot or will not accept the whole of the reinsurance, the reinsurer arranges retrocession of the share of the risk/treaty which exceeds the reinsurer’s own share before definite acceptance.