What is a reinsurance scheme?

Answer:

Reinsurance schemes are somewhat similar to reinsurance commutations, where the cedant assumes back the outstanding liabilities on a reinsured block of business a few years after the exposure period has closed. In a scheme, however, rather than the cedant and the reinsurer negotiating a commutation price, an independent court is used to determine the cost of the liabilities that are being assumed back.

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