Cedent

Published: | Updated: April 20, 2018

Definition - What does Cedent mean?

A cedent is a party who gives the responsibility for reimbursing certain risks to another party. In the context of insurance, the cedent is the party that pays a premium to an insurance company in exchange for insurance coverage.

Insuranceopedia explains Cedent

The term cedent is most commonly used in the reinsurance industry. In reinsurance, cedents are the insurance companies who cede risks to reinsurers. For example, if a life insurance company cedes $5 million worth of risk to a reinsurance company in exchange for premium payments, the life insurance company would be the cedent.


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