Page 36 - Reinsurance Management IC85

Reinsurance Management

Q. Discuss the various types of portfolios which
may be protected under excess of loss covers.

The types of portfolios protected under XL cover
are:
a. Net Account: To protect ceding company's net

retained account. If the primary protection is on
quota share basis, the XL covers should be for
protecting ceding company's net account as well
as the interests of the quota share reinsurers, who
desire such common protection.

b. Surplus Treaties: On the grounds of equity and
sound underwriting, the net retained account and
the surplus treaty should be separately protected.
A separate XL cover may be arranged to protect
surplus treaties when a treaty is unbalanced and
where the surplus treaty is arranged on a
reciprocal basis.

c. Umbrella cover or whole account cover or
clash cover: Sometimes, it is possible that a
single event like fire or storm may cause

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