Question

What is the difference between Aggregate Excess of Loss and Excess of Loss Ratio reinsurance?

a.

The parameters in Aggregate Excess of Loss are expressed in amounts, while in Excess of Loss Ratio they are expressed in percentages.

b.

The parameters in Excess of Loss Ratio are expressed in amounts, while in Aggregate Excess of Loss they are expressed in percentages.

c.

There is no difference between them.

d.

None of the above.

Posted under IC85 Reinsurance Management

Answer: (a).The parameters in Aggregate Excess of Loss are expressed in amounts, while in Excess of Loss Ratio they are expressed in percentages. Explanation:Aggregate Excess of Loss uses amounts as triggers for cover, while Excess of Loss Ratio uses loss percentages/loss ratio.

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Q. What is the difference between Aggregate Excess of Loss and Excess of Loss Ratio reinsurance?
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