Reinsurance is considered as a significant process which provides necessary securities to insurer which safeguards them from financial problems that arises from any future unexpected events. Comment on the statement and explain the meaning and benefits of the term Reinsurance. Also read the following statements and identify the relevant reinsurance type/contract for each case.

This type of reinsurance is based on the features such as ceding of percentage of risk to the reinsurer and recover of same ceded percentage from reinsurer related with all losses on those risks. Such kinds of contracts are generally used by new companies