Question

In non-proportional treaty, how can the reinsured split and structure their total XL requirement?

a.

In equal proportions

b.

In layers

c.

In fixed amounts

d.

In percentages

Posted under IC85 Reinsurance Management

Answer: (b).In layers Explanation:The reinsured can split & structure his total XL requirement in layers depending on market conditions, availability of capacity, and cost-effectiveness. These layers would sit on top of each other consecutively; each can be placed with different reinsurers and get triggered only after capacity of the previous layer is exhausted.

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Q. In non-proportional treaty, how can the reinsured split and structure their total XL requirement?
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