Quota Share
Plain English Definition: A reinsurance arrangement where multiple insurers share risks and premiums proportionally.
What Quota Share really means for someone with an insurance policy
Quota share allows insurers to manage large risks by sharing them with other companies, spreading potential losses across multiple entities.
Quota Share Real World Examples
- Two insurers splitting the risk of a large property policy.
- Multiple companies covering an expensive commercial building.
- Sharing reinsurance on a high-value cargo shipment.