What is the original insurer referred to as in reinsurance?

In the context of reinsurance, the original insurer is referred to as the primary insurer. This term reflects the role of the primary insurer in the insurance chain; it is the entity that initially provides coverage to the policyholder. When the primary insurer seeks to mitigate its risk, particularly from large losses, it may transfer some of its risk to a reinsurer.

The primary insurer retains the responsibility of servicing the original policy, while the reinsurer steps in to provide additional financial backing through the reinsurance agreement. Understanding this relationship is crucial for grasping how reinsurance works and the roles each party plays in managing risk. The other terms do not accurately describe the original insurer in this context: for instance, the reinsurer is the entity taking on the risk, while the ceded company and cessation company do not apply to the terminology used in reinsurance.