Recapture
Updated: 29 February 2024
What Does Recapture Mean?
Recapture is a provision in a contract that entitles the seller to gain back an asset or a portion of it from a buyer.
In terms of insurance, it means that a ceding company retrieves the risks it once turned over to a reinsurer.
Insuranceopedia Explains Recapture
Mall space for vendors often has a recapture clause. A percentage of the sales of a seller in the mall is usually meant for the mall owner. Failure to so because of lack of sales means a termination of the contract or the voluntary withdrawal of the lessee.
Recapture also occurs in the insurance industry when an insurer that transferred risks to a reinsurer takes them back after a period of time.
Related Definitions
Related Terms
Related Articles
Insurance Self-Service Portal: The Future of Customer Experience
Blockchain’s Impact on Transforming the Insurance Landscape
What Every College Student Should Know About Renters Insurance
Guidance for Nurses: Five Essential HIPAA Compliance Tips
Insuring Your Financial Future: the Crucial Role of Accounting in Insurance
The Future of Insurtech: How Technology is Transforming the Insurance Industry
Related Reading
Revealing the Most And Least Popular U.S. Insurance Companies
What Students Need to Know About Insurance Coverage During Internships
A Roadmap for Students Interested in the Insurance Industry
Strong Identity Verification in the Insurance Sector
How to Avoid Online Insurance Scams
How to Get Into the Insurance Industry With a Finance Degree