Question

What is the characteristic of a "Working Excess" reinsurance cover?

a.

It provides coverage for high severity losses

b.

It has a high indemnity and a high retention

c.

It anticipates loss frequency rather than loss severity

d.

It is a contract that covers all types of reinsurance

Posted under IC85 Reinsurance Management

Answer: (c).It anticipates loss frequency rather than loss severity Explanation:A "Working Excess" is a type of excess reinsurance cover that anticipates loss frequency. It usually has a low indemnity and attaches above a relatively low retention. This implies that it focuses on covering frequent losses rather than severe losses.

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Q. What is the characteristic of a "Working Excess" reinsurance cover?
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