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== biz/books == |
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''' |
'''Did you know?''' |
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__NOCACHE__ |
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[[sales & marketing ▸]] {{!}} |
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{{#switch: {{#expr: {{CURRENTTIMESTAMP}} mod 100}} |
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[[products ▸]] {{!}} |
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| 0 = {{:Definition:Bordereaux}} |
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[[strategy ▸]] {{!}} |
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| 1 = {{:Definition:Burning cost}} |
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| 2 = {{:Definition:Commutation (reinsurance)}} |
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'''career ▸''' {{!}} |
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| 3 = {{:Definition:Finite reinsurance}} |
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[[leadership ▸]] {{!}} |
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| 4 = {{:Definition:Fronting}} |
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[[presentation ▸]] {{!}} |
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| 5 = {{:Definition:Follow-the-fortunes}} |
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{{Inline expand | productivity ▸|{{read|[[Atomic Habits]]}} {{read|[[The 7 Habits of Highly Effective People]]}} {{read|[[The Power of Habit]]}} {{read|[[see all ▸]]}}}} {{!}} |
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| 6 = {{:Definition:Cut-through clause}} |
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[[writing ▸]] {{!}} |
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| 7 = {{:Definition:Binding authority}} |
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| 8 = {{:Definition:Clash cover}} |
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'''investing ▸''' {{!}} [[value ▸]] {{!}} [[growth ▸]] |
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| 9 = {{:Definition:Attachment point}} |
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| 10 = {{:Definition:Exhaustion point}} |
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| 11 = {{:Definition:Reinstatement premium}} |
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{{Section separator}} |
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| 12 = {{:Definition:Sliding-scale commission}} |
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| 13 = {{:Definition:Profit commission}} |
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== biz/people == |
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| 14 = {{:Definition:Loss portfolio transfer}} |
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'''CEOs ▸''' {{!}} |
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| 15 = {{:Definition:Adverse development cover (ADC)}} |
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[[CEOs of DJIA companies|DOW 30 ▸]] {{!}} |
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| 16 = {{:Definition:Aggregate excess-of-loss reinsurance}} |
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[[CEOs of Nasdaq-100 companies|Nasdaq-100 ▸]] {{!}} |
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| 17 = {{:Definition:Catastrophe excess-of-loss reinsurance}} |
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[[CEOs of FTSE 100 companies|FTSE 100 ▸]] {{!}} |
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| 18 = {{:Definition:Per-risk excess of loss reinsurance}} |
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[[CEOs of DAX companies|DAX 40 ▸]] {{!}} |
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| 19 = {{:Definition:Risks-attaching basis}} |
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[[CEOs of CAC 40 companies|CAC 40 ▸]] {{!}} |
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| 20 = {{:Definition:Losses-occurring basis}} |
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[[CEOs of EURO STOXX 50 companies|EURO STOXX 50 ▸]] {{!}} |
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| 21 = {{:Definition:Claims-made trigger}} |
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[[CEOs of SMI companies|SMI ▸]] {{!}} |
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| 22 = {{:Definition:Signing down}} |
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[[CEOs of S&P/TSX 60 companies|S&P/TSX 60 ▸]] {{!}} |
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| 23 = {{:Definition:Sunset clause}} |
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[[CEOs of NIFTY 50 companies|NIFTY 50 ▸]] {{!}} |
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| 24 = {{:Definition:Utmost good faith}} |
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[[CEOs of HSI companies|HSI ▸]] {{!}} |
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| 25 = {{:Definition:Contra proferentem}} |
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| 26 = {{:Definition:Incurred but not reported (IBNR)}} |
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'''quotes ▸''' {{!}} |
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| 27 = {{:Definition:Bornhuetter-Ferguson method}} |
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{{Inline expand |business ▸|{{read|[[Notable quotes about accounting| accounting]]}} {{read|[[Notable quotes about advertising | advertising]]}} {{read|[[Notable quotes about customers | customers]]}} {{read|[[Notable quotes about employees|employees]]}} {{read|[[Notable quotes about marketing|marketing]]}} {{read|[[Notable quotes about sales|sales]]}} {{read|[[Notable quotes about strategy|strategy]]}} {{read|[[see all ▸]]}} }} {{!}} |
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| 28 = {{:Definition:Chain-ladder method}} |
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{{Inline expand|career ▸|{{read|[[leadership]]}} {{read|[[productivity]]}} }} {{!}} |
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| 29 = {{:Definition:Stochastic reserving}} |
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{{Inline expand|investing ▸|{{read|[[value]]}} {{read|[[growth]]}} }} {{!}} |
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| 30 = {{:Definition:Loss development triangle}} |
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| 31 = {{:Definition:Credibility factor}} |
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{{Section separator}} |
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| 32 = {{:Definition:Allocated loss adjustment expense (ALAE)}} |
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| 33 = {{:Definition:Unallocated loss adjustment expense (ULAE)}} |
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| 34 = {{:Definition:Experience modification factor}} |
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| 35 = {{:Definition:Industry loss warranty (ILW)}} |
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| 36 = {{:Definition:Sidecar (reinsurance)}} |
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| 37 = {{:Definition:Collateralized reinsurance}} |
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| 38 = {{:Definition:Catastrophe bond (CAT bond)}} |
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| 39 = {{:Definition:Retrocession}} |
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| 40 = {{:Definition:Surplus share reinsurance}} |
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| 41 = {{:Definition:Surplus strain}} |
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| 42 = {{:Definition:Surplus relief}} |
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| 43 = {{:Definition:Funds withheld reinsurance}} |
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| 44 = {{:Definition:Modified coinsurance}} |
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| 45 = {{:Definition:Coinsurance penalty}} |
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| 46 = {{:Definition:Anti-concurrent causation clause}} |
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| 47 = {{:Definition:Continuous trigger}} |
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| 48 = {{:Definition:Efficient proximate cause}} |
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| 49 = {{:Definition:Horizontal exhaustion}} |
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| 50 = {{:Definition:Vertical exhaustion}} |
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| 51 = {{:Definition:Sue and labor clause}} |
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| 52 = {{:Definition:Honorable engagement clause}} |
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| 53 = {{:Definition:Hours clause}} |
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| 54 = {{:Definition:Batch clause}} |
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| 55 = {{:Definition:Aggregation clause}} |
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| 56 = {{:Definition:Omnibus clause}} |
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| 57 = {{:Definition:Running down clause}} |
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| 58 = {{:Definition:Warehouse-to-warehouse clause}} |
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| 59 = {{:Definition:General average}} |
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| 60 = {{:Definition:Particular average}} |
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| 61 = {{:Definition:Constructive total loss}} |
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| 62 = {{:Definition:York-Antwerp Rules}} |
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| 63 = {{:Definition:Protection and indemnity (P&I)}} |
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| 64 = {{:Definition:Demand surge}} |
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| 65 = {{:Definition:Social inflation}} |
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| 66 = {{:Definition:Nuclear verdict}} |
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| 67 = {{:Definition:Silent cyber}} |
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| 68 = {{:Definition:Affirmative cyber coverage}} |
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| 69 = {{:Definition:Parametric insurance}} |
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| 70 = {{:Definition:Embedded insurance}} |
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| 71 = {{:Definition:Takaful}} |
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| 72 = {{:Definition:Bancassurance}} |
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| 73 = {{:Definition:Microinsurance}} |
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| 74 = {{:Definition:Captive insurance company}} |
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| 75 = {{:Definition:Cell captive}} |
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| 76 = {{:Definition:Protected cell company (PCC)}} |
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| 77 = {{:Definition:Reciprocal insurance exchange}} |
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| 78 = {{:Definition:Risk retention group (RRG)}} |
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| 79 = {{:Definition:Lloyd's syndicate}} |
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| 80 = {{:Definition:Reinsurance to close (RITC)}} |
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| 81 = {{:Definition:Equitas}} |
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| 82 = {{:Definition:Funds at Lloyd's (FAL)}} |
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| 83 = {{:Definition:Syndicate-in-a-box (SIAB)}} |
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| 84 = {{:Definition:Part VII transfer}} |
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| 85 = {{:Definition:Solvent scheme of arrangement}} |
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| 86 = {{:Definition:Run-off (insurance)}} |
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| 87 = {{:Definition:Demutualization}} |
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| 88 = {{:Definition:Depopulation program}} |
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| 89 = {{:Definition:Probable maximum loss (PML)}} |
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| 90 = {{:Definition:Exceedance probability curve (EP curve)}} |
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| 91 = {{:Definition:Realistic disaster scenario (RDS)}} |
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| 92 = {{:Definition:Monte Carlo simulation}} |
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| 93 = {{:Definition:Copula}} |
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| 94 = {{:Definition:Bühlmann model}} |
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| 95 = {{:Definition:Cape Cod method}} |
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| 96 = {{:Definition:Extra-contractual obligation (ECO)}} |
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| 97 = {{:Definition:Loss in excess of policy limits (XPL)}} |
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| 98 = {{:Definition:Doctrine of reasonable expectations}} |
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| 99 = {{:Definition:Longevity swap}} |
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}} |
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Latest revision as of 22:46, 12 March 2026
Did you know?
🕐 Hours clause is a reinsurance contract provision that defines the maximum time window during which individual losses from a single catastrophic event can be aggregated and treated as one occurrence for recovery purposes. Commonly found in catastrophe excess-of-loss treaties, this clause establishes a fixed period — typically ranging from 72 to 168 hours — within which all losses stemming from an event such as a hurricane, earthquake, or windstorm are grouped together. Without such a provision, disputes could arise over whether sequential damage constitutes one event or several, fundamentally altering the reinsurance recovery calculation.
⚙️ When a catastrophic event unfolds, the cedent selects a contiguous block of hours that captures the largest concentration of insured losses. The chosen window does not need to align with the meteorological or seismological start and end of the event; rather, the insurer positions the window strategically to maximize the amount recoverable under the excess-of-loss layer. All individual claims falling within that window are summed as one occurrence, and the total is applied against the treaty's retention and limit. Losses falling outside the window are either absorbed by the cedent or treated as a separate occurrence subject to a fresh retention.
📊 Precision in drafting and applying the hours clause can mean the difference between a fully recoverable catastrophe loss and a significant net retention for the ceding insurer. During multi-day events — particularly slow-moving hurricanes or earthquake sequences with major aftershocks — the length of the window directly influences how much of the aggregate damage qualifies for treaty protection. Reinsurers scrutinize hours-clause language carefully during negotiations, and disputes over its application have driven notable arbitration proceedings. For underwriters and actuaries modeling catastrophe exposures, understanding the interplay between the hours clause and probable maximum loss estimates is essential to accurate reinsurance pricing.
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