Proportional and Excess of Loss Reinsurance
Free SOA Exam FAM (Fundamentals of Actuarial Mathematics) lesson in Short-Term Insurance and Reinsurance Coverages. 9 min read, ~1,337 words.
Quota share: fixed cession of every loss. Cedant's distribution has same shape, scaled by. Surplus share: cession varies by policy size. Small policies fully retained. Per-risk XOL: reinsurer pays. Expected =. Per-occurrence XOL: triggers on aggregate event loss. Stop-loss: triggers on annual aggregate. Order matters: quota share before XOL shrinks...
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- Content
- Example 1
- Example 2
- Common Mistakes
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- Exam Shortcuts
Learning objectives
- 1d
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