7/25/2019 Loss-Aggregate Part II

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Introduction to Loss SensitiveProvision

Defnition: A reinsurance contract provision that variesthe ceded premium, loss, or commission based upon theloss experience o the contract

Purpose: Client shares in ceded experience & could beincented to care more about the reinsurers results

!"pical Loss Sharin# Provisions$ Proft Commission

$ Slidin# Scale Commission

$ Loss %atio Corridors

$ Annual A##re#ate Deductibles

$ Sin# %ated Premiums$ %einstatements