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12 12/2 M97/February 2018 Reinsurance
Chapter Introduction

In this section, we outline the extent of cover provided by the main classes within a marine account and
an aviation account, and describe the main considerations for reinsuring those classes.

Key terms
This chapter features explanations of the following terms and concepts:
Agreed value AVN 34A AVN 4 AVN 41A
AVN 61 AVN 64A and B Backup policy Cargo
Containerisation Exclusion clauses Freight Hull
Incidental aviation Incidental non-marine JELC Excess Loss Clauses Liabilities
LSW 345A Passenger voluntary Personal accident Profit commission
settlement
Protection and Refinery exclusion clause Total loss only (TLO) Warsaw Convention
indemnity (P&I) reinsurance

A Reinsuring a marine account

A marine account may comprise any or all of the following classes of business:

hull or ‘time’
account

incidental cargo or ‘voyage’
aviation account Reference copy for CII Face to Face Training

Marine account:
classes of business
incidental
non-marine liabilities

war energy or ‘rig’
account

Be aware
Incidental non-marine and incidental aviation are significant because a shipment of, say, electrical components
from the Far East to Europe can include stages of the journey involving land and air travel, as well as passage
by sea.

It must be remembered that not all marine insurers, in the UK or elsewhere, necessarily underwrite all
Not all marine
insurers underwrite the above classes; therefore, their reinsurance needs may vary considerably. The proportion of the whole
all classes represented by any one of the above classes has a material effect on the insurer’s assessment of its
requirements. Depending on the composition of the marine account, the purchase of a separate
programme of protection for the assumed reinsurance account may be necessary.