Proportional and Excess of Loss Reinsurance
Free SOA Exam FAM (Fundamentals of Actuarial Mathematics) lesson in Short-Term Insurance and Reinsurance Coverages. 12 min read, ~1,775 words.
Quota share: cedes a fixed fraction of every loss; the cedant's retained distribution keeps the same shape, scaled by. Surplus share: cession varies by policy size. Small policies are fully retained, larger policies are partially ceded. Per-risk XOL: reinsurer pays; expected payment. Per-occurrence XOL triggers on the aggregate loss from...
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What this lesson covers
- Content
- Example 1
- Example 2
- Example 3
- Common Mistakes
- Check Your Understanding
- Exam Shortcuts
Learning objectives
- 1d
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