Summary |
Excess of loss is basically a form of reinsurance whereby the direct insurer decides upon a monetary limit to the amount he is prepared to lose as a result of any one event on the class or classes of business concerned and then arranges, by way of reinsurance, to be relieved of the amount of loss he sustains as a result of any one event, which is in excess of that limit. Excess of loss reinsurance may also be written on an "any one risk" basis and this is discussed in the specialist sections of the Report.
|
