Participation clause

Discussion in 'SA3' started by SAO123, Apr 19, 2011.

  1. SAO123

    SAO123 Member

    Hi all,

    In Sep 07 Q3 vii) we are asked about Adverse Development Cover, and one of the risk mitigations for the reinsurer is a 'participation clause'.

    What is this?

    Is this the fact that the cedant has to take a line on the contract (e.g. 5 or 10%) to retain an interest in the risk?

    Many thanks
     
  2. Duncan Brydon

    Duncan Brydon ActEd Tutor Staff Member

    Yes, that's right.
     
    Last edited: Dec 2, 2013

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