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== biz/books == |
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'''Did you know?''' |
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| business = [[sales & marketing]] · [[products]] · [[strategy]] |
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__NOCACHE__ |
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| career = [[leadership]] · [[presentation]] · {{Inline expand|productivity ▸|[[Atomic Habits]] · |
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[[The 7 Habits of Highly Effective People]] · [[The Power of Habit]] |
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| 0 = {{:Definition:Bordereaux}} |
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| 1 = {{:Definition:Burning cost}} |
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| investing = [[value]] · [[growth]] |
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| 2 = {{:Definition:Commutation (reinsurance)}} |
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| 3 = {{:Definition:Finite reinsurance}} |
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| 5 = {{:Definition:Follow-the-fortunes}} |
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| 6 = {{:Definition:Cut-through clause}} |
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| 7 = {{:Definition:Binding authority}} |
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== biz/people == |
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| 8 = {{:Definition:Clash cover}} |
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| 9 = {{:Definition:Attachment point}} |
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| ceos = [[CEOs of DJIA companies|DOW 30]] · [[CEOs of Nasdaq-100 companies|Nasdaq-100]] · [[CEOs of FTSE 100 companies|FTSE 100]] · {{show |
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| 10 = {{:Definition:Exhaustion point}} |
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| 11 = {{:Definition:Reinstatement premium}} |
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| 12 = {{:Definition:Sliding-scale commission}} |
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|text=[[CEOs of DAX companies|DAX 40]] · [[CEOs of CAC 40 companies|CAC 40]] · [[CEOs of EURO STOXX 50 companies|EURO STOXX 50]] · [[CEOs of SMI companies|SMI]] · [[CEOs of S&P/TSX 60 companies|S&P/TSX 60]] · [[CEOs of NIFTY 50 companies|NIFTY 50]] · [[CEOs of HSI companies|HSI]]}} |
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| 13 = {{:Definition:Profit commission}} |
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| 14 = {{:Definition:Loss portfolio transfer}} |
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| 15 = {{:Definition:Adverse development cover (ADC)}} |
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| 16 = {{:Definition:Aggregate excess-of-loss reinsurance}} |
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== biz/quotes == |
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| 17 = {{:Definition:Catastrophe excess-of-loss reinsurance}} |
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| 18 = {{:Definition:Per-risk excess of loss reinsurance}} |
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| business = [[Notable quotes about accounting| accounting]] · [[Notable quotes about advertising | advertising]] · [[Notable quotes about customers | customers]] · {{show |
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| 19 = {{:Definition:Risks-attaching basis}} |
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| 20 = {{:Definition:Losses-occurring basis}} |
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| 21 = {{:Definition:Claims-made trigger}} |
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| 22 = {{:Definition:Signing down}} |
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|text= [[Notable quotes about employees|employees]] · [[Notable quotes about marketing|marketing]] · [[Notable quotes about sales|sales]] · [[Notable quotes about strategy|strategy]] · <nowiki>[</nowiki>[[see all ▸]]<nowiki>]</nowiki> |
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| 23 = {{:Definition:Sunset clause}} |
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| 24 = {{:Definition:Utmost good faith}} |
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| career = [[leadership]] · [[presentation]] · [[productivity]] |
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| 25 = {{:Definition:Contra proferentem}} |
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| investing = [[value]] · [[growth]] |
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| 26 = {{:Definition:Incurred but not reported (IBNR)}} |
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| 27 = {{:Definition:Bornhuetter-Ferguson method}} |
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| 28 = {{:Definition:Chain-ladder method}} |
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| 29 = {{:Definition:Stochastic reserving}} |
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| 30 = {{:Definition:Loss development triangle}} |
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| 31 = {{:Definition:Credibility factor}} |
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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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Latest revision as of 22:46, 12 March 2026
Did you know?
📋 Loss portfolio transfer is a reinsurance transaction in which an insurer cedes an entire portfolio of outstanding claims reserves — including both reported and incurred but not reported (IBNR) liabilities — to a reinsurer in exchange for a lump-sum premium payment. Unlike prospective reinsurance that covers future losses, a loss portfolio transfer is a form of retroactive reinsurance designed to move existing liabilities off the ceding company's balance sheet. It is commonly used when insurers want to exit a particular line of business, clean up legacy reserves, or prepare for a merger or acquisition.
⚙️ The mechanics hinge on an actuarial valuation of the reserves being transferred. The ceding insurer and the assuming reinsurer negotiate a premium — typically at or near the present value of expected future claim payments — and the reinsurer assumes responsibility for administering and settling the underlying claims. The assuming party takes on both the investment risk and the reserve risk that actual payments may exceed estimates. Regulatory approval is often required, and the transaction must comply with accounting standards governing statutory and GAAP treatment of retroactive reinsurance, which can affect how the financial benefit is recognized on the ceding company's books.
💡 For insurers burdened by long-tail liabilities — such as those arising from asbestos, environmental, or workers' compensation claims — a loss portfolio transfer offers a path to financial clarity and operational focus. By removing unpredictable legacy obligations, the ceding company frees up capital and management attention for more profitable underwriting. For the assuming reinsurer, it represents an investment opportunity: if claims develop more favorably than projected, the margin between the premium received and actual payouts generates profit. This transaction type has grown in strategic importance as run-off specialists and legacy market players have expanded their role in the global insurance ecosystem.
Related concepts: