What is proportional Reinsurance ?

Proportional Reinsurance is the system where the Reinsurer shares loses in the same way as it shares premium.
In Proportional Reinsurance a certain percentage is fixed as X%, where by the Reinsurer keeps the X% and the Ceding company keeps (100-X%). And if a claim occurs both the ceding company and the reinsurer shares the claims in the same way.

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