Excess of loss reinsurance responds to eligible losses above an agreed retention within a defined layer.
The distinction that matters
The trigger can be per risk, per event or aggregate; the contract determines which losses combine and when protection is exhausted.
What to check
- Check retention and layer limit.
- Read event and aggregation definitions.
- Review reinstatement and exclusion terms.
Example to discuss
Several storm losses may aggregate differently under a catastrophe treaty than under a per-risk contract.
This is a hypothetical comparison, not a customer claim or a determination of cover.
Jurisdiction and scope
This is an insurer-to-reinsurer concept. A retail customer should check the original policy and insurer rather than infer a direct claim entitlement from a reinsurance structure. Reporting definitions and contract terms may differ.
Sources and further reading
General information only. The policy, schedule and applicable rules determine the actual position. For a personal decision, use an appropriately qualified adviser or the relevant provider.