What basic difference between ceding company and re insurance?

Answer 1

The basic difference between ceding company and reinsurance is that the ceding company is the company that transfers some or all of its risks to the reinsurer, while the reinsurer is the company that accepts the risk transferred by the ceding company. The ceding company remains responsible for the initial underwriting of the policy and retains some portion of the risk whereas the reinsurer is responsible for the claims from the ceded policies. In short, ceding company is the one that sells insurance policies while reinsurer is the one that provides insurance to the ceding company.