Hi All, What is the difference between Risk Basis Excess of Loss Reinsurance & Individual Surplus Reinsurance? I think both are serving the same purpose for Insurer Regards, Rajat
probably not a lot in this context which is why Risk Xl isn't in the course. Risk Xl could have an upper limit. Probably some other subtle differences. especially if surplus is used with Original Terms (where original premiums are shared rather than using reins risk prems)
Hi Rajat My understanding is that XoL supplements Surplus. Surplus is proportional reinsurance covering individual claims e.g. ceding everything above $1m SI. XoL could be worded such that if the cumulative claims in a year exceeds $50m, XoL reinsurer covers everything above this limit up to an upper limit of say $100m. Another difference is XoL is usually a one-year term contract, whereas the reinsurance treaty for Surplus is 'back-to-back' to the policy sold. Hope this helps, Jian
