Non-Proportional Reinsurance
Definition
Reinsurance where the reinsurer only pays when losses exceed a specified retention amount. The reinsurer receives a premium but not a share of original premiums.
Practical Example
Excess of loss treaty where reinsurer pays losses above $10M per occurrence.
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Related Terms
Non-proportional reinsurance providing coverage for losses exceeding a specified retention amount. Can be per risk, per occurrence, or aggregate.
An excess of loss layer with relatively low attachment point that is expected to be penetrated frequently. Covers more predictable, frequent losses.
Reinsurance protection against multiple policies or treaties being triggered by a single catastrophic event. Protects against cumulative losses across different contracts.