Lines of business like Employers' liability, product liability, etc are likely to be protected by non-proportional reinsurance. I want to know whether this RI cover is commonly on: - claims made basis - risks attaching basis - losses occurring basis Thank you in advance! Jammy
That is surprising to me. I guess that might have to do the base cover for EL being LOD in UK? Mainly because it is a mandatory cover in UK and the govt would want to avoid any gaps in cover. I attempt to summarize the most common basis of cover for liability lines. Picking up from core reading for primary cover basis. Please confirm my understanding: Type of Liability -- Primary cover basis -- RI cover basis Employers' -- LOD -- LOD Product -- Claims made -- Claims made Prof Indemnity -- Claims made -- Claims made
As Ian has said above the XL reinsurance is most likely to be written on a LOD basis in all three cases in which case where the underlying direct business was written on a claims-made basis, the date of loss would typically be the date the loss was reported to the direct insurer. It is also possible for the XL reinsurance to be written on a claims-made as you suggest.
