Ceded Space

Ceded space refers to the area or property that an insurance policyholder transfers to an insurer for coverage. Essentially, when you purchase insurance, you "cede" or give up the risk of certain potential losses to the insurance company. This shared risk allows the insurer to manage and pool multiple policies, ensuring they can cover claims when needed. The term is common in types of insurance like reinsurance or in industries such as aviation or space law, where parties agree to allocate or transfer portions of space or risk to others for safety, liability management, or regulatory reasons.