Reinsurance

What is reinsurance?

The meaning of the term ‘reinsurance’ has arisen in a variety of different contexts over the years, and it has become apparent that there is no single all-embracing definition. Much has depended upon the nature of the reinsurance contract and the reason the question is being asked. The most recent decision, that of the VAT tribunal in Travellers Casualty & Surety Co of Europe Ltd , 6 May 2005, raised the question of whether premiums payable to reinsurers by the issuers of surety bonds were subject to insurance premium tax. There is a statutory exemption in the case of reinsurance.