Person assigning a liability to a buyer. See “cession”.

In the insurance industry ordinarily denotes the transfer of a portion of risk by an insurer to a reinsurer by means of a reinsurance treaty or the assignment of rights stemming from an insurance contract to a third party.

All-inclusive expense ratio calculated for the non-life insurance sector (class II). It is the ratio of all the expenses to administer insurance and pay claims to earned premium in a given period. The combined ratio should not exceed 100% as that would signify that the revenues from the sales of insurance are insufficient to cover claims and claims handling expenses.

Combined ratio’s constituent elements:

• loss ratio – the ratio of claims to earned premium in a given period.
• (insurance activity) expense ratio – the ratio of an insurance undertaking’s operating expenses to earned premium. It consists of two major components:
  - acquisition expense ratio – the ratio of acquisition expenses incurred by an insurance undertaking to the earned premium coming from these expenses,
  - administrative expense ratio – ratio of administrative expenses to earned premium”