Legal Definitions - cedant

Definition: Cedant is a term used in the insurance industry to refer to an insurer that transfers all or part of a risk it underwrites to a reinsurer, usually along with a percentage of the original premium. It is also known as a cedent or reinsured.

Example: ABC Insurance Company underwrites a policy for a largeconstruction project. However, ABC Insurance Company does not want to bear the entire risk of the policy, so it transfers a portion of the risk to XYZ Reinsurance Company. ABC Insurance Company is the cedant or reinsured in this scenario.

This example illustrates how a cedant transfers a portion of the risk it underwrites to a reinsurer, reducing its exposure to potential losses.