What is the term for the insurer that transfers the risk to another insurance company?

The correct term for the insurer that transfers the risk to another insurance company is "Ceding Company." This refers to the original insurance company that enters into a reinsurance agreement where it cedes or passes on some of its risk to a reinsurer. The ceding company typically does this to manage its risk exposure, improve its capital position, or stabilize its underwriting results.

In a reinsurance arrangement, the reinsurer takes on the risk from the ceding company, thereby providing a safety net for the original insurer. Understanding the role of the ceding company is crucial in the context of insurance as it highlights how companies manage risk, helping to ensure their financial stability and ability to pay claims.

Other terms, such as primary insurer, reinsurer, and underwriter, hold different meanings in the insurance sector. The primary insurer is the original insurer offering a policy to the insured. A reinsurer is the entity that assumes the risk from the ceding company. An underwriter evaluates and takes on the risk of insuring individuals or businesses. Each of these roles plays an important part in the insurance ecosystem but specifically, the term that describes the company transferring risk is indeed the ceding company.