View source for Definition:Programme (also program)

📋 '''Programme (also program)''' refers to a structured arrangement of [[Definition:Insurance policy | insurance]] or [[Definition:Reinsurance | reinsurance]] coverage assembled to protect a particular risk, line of business, or portfolio. In insurance markets, the term describes how multiple layers, policies, or contracts are coordinated into a unified protection scheme — often involving several [[Definition:Insurance carrier | insurers]] or [[Definition:Reinsurer | reinsurers]] each taking a defined share or layer. The spelling "programme" predominates in the [[Definition:Lloyd's of London | Lloyd's]] and London market tradition, while "program" is standard in American usage; both refer to the same structural concept. Whether it is a large corporate [[Definition:Property insurance | property]] programme assembled by a [[Definition:Broker | broker]] across several markets or a [[Definition:Reinsurance programme | reinsurance programme]] combining [[Definition:Quota share | quota share]] and [[Definition:Excess of loss | excess of loss]] treaties, the programme is the architectural blueprint for how risk is distributed and priced.

🔧 A programme is typically designed by a broker or [[Definition:Risk manager | risk manager]] who analyses the insured's exposures and then structures layers of coverage that together provide the desired protection. The lowest layer — often called the [[Definition:Primary layer | primary layer]] or [[Definition:Working layer | working layer]] — absorbs the most frequent losses, while higher [[Definition:Excess layer | excess layers]] respond to less frequent but more severe events. In reinsurance, a [[Definition:Cedant | cedant]] may construct a programme that blends [[Definition:Proportional treaty | proportional treaties]] with [[Definition:Non-proportional reinsurance | non-proportional]] protections, calibrating [[Definition:Retention | retentions]] and limits to optimise capital efficiency. Each participant receives a schedule or slip outlining their share, attachment point, and terms. In the London market, the programme is often placed through a [[Definition:Slip | slip]] that circulates among [[Definition:Underwriter | underwriters]], whereas in continental European and Asian markets, programme placement may follow different brokerage customs and regulatory protocols.

🌍 The way a programme is assembled directly shapes an organisation's financial resilience and cost of risk transfer. A well-structured programme avoids gaps between layers, minimises redundant coverage, and secures competitive pricing by leveraging competition among capacity providers. For multinational corporations, a [[Definition:Global insurance programme | global insurance programme]] adds another dimension of complexity: local policies must comply with [[Definition:Admitted insurance | admitted insurance]] requirements in each jurisdiction — from [[Definition:Solvency II | Solvency II]] markets in Europe to regulatory regimes in China, Brazil, or India — while a master policy sits above to provide [[Definition:Difference in conditions (DIC) | difference in conditions]] or [[Definition:Difference in limits (DIL) | difference in limits]] protection. Programme design is therefore both a technical and strategic discipline, requiring deep knowledge of coverage, regulation, and market capacity.

'''Related concepts:'''
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* [[Definition:Reinsurance programme]]
* [[Definition:Excess of loss]]
* [[Definition:Quota share]]
* [[Definition:Global insurance programme]]
* [[Definition:Slip]]
* [[Definition:Layered programme]]
{{Div col end}}