Tag Archives: guides

Dealing With the Big Stuff: Excess of Loss Reinsurance

A reinsurance contract can protect an insurer’s balance sheet against abnormal fluctuations in results that may be caused by large individual claims or by larger numbers of smaller claims that occur as a result of a catastrophe or other unforeseen circumstances.  … Continue reading →

Clean-cut Reinsurance Treaties

When I began working in reinsurance 40 years ago, proportional treaty reinsurance was far more widespread than it is today and in fact formed the backbone of the reinsurance broker’s business. While excess of loss contracts were routinely placed, it … Continue reading →

Excess of Loss Reinsurance Contracts: LOD or RAD Basis?

When it comes to expressing the period applicable to an excess of loss reinsurance contract, there are two common ways of defining which losses fall within the contract period. Continue reading →

Profit Commission in Proportional Treaties

Proportional reinsurance treaties can be quite complicated animals when it comes to handling their financial aspects.  While the processing of the accounts is now largely a mechanical process, understanding what they actually mean is far harder.  A case in point … Continue reading →

Naming Your Price: Excess of Loss Rating Principles

In a previous blog I discussed how a reinsurer might arrive at a price to protect an insurer’s retained portfolio of property business against individual large losses. The so-called “exposure rating” method is a useful tool for determining non-proportional reinsurance … Continue reading →