What is Retention Limit?
In this glossary, Retention Limit refers to: The maximum amount of risk or loss an insurance company or reinsurer retains on a policy or portfolio before transferring the excess to reinsurance; a key parameter in underwriting and reinsurance treaties.
How is Retention Limit used in finance?
In finance communication, this term appears in contexts such as: "The reinsurer will only accept claims above the retention limit agreed upon in the reinsurance contract."
Why does Retention Limit matter in finance?
Retention Limit matters because it supports clear communication in Insurance contexts for Financial Analysts, Bankers, and Traders. It also connects to aviation training and exam language such as CFA, ACCA, and FRM.
Who uses Retention Limit?
Retention Limit is mainly used by Financial Analysts, Bankers, and Traders.
What category does Retention Limit belong to?
In this glossary, Retention Limit is grouped under Insurance. Related pages in this category explain adjacent procedures, commands and operational concepts.
Where does this definition come from?
This definition is sourced from CFA Institute, IFRS Foundation, FASB (GAAP), Basel III Framework and published by Protermify Finance as a static finance reference page.
