https://www.insurerbrain.com/w/index.php?action=history&feed=atom&title=Definition%3AClash_cover 2026-05-02T10:24:47Z Revision history for this page on the wiki MediaWiki 1.43.8 https://www.insurerbrain.com/w/index.php?title=Definition:Clash_cover&diff=8725&oldid=prev 2026-03-11T04:31:51Z

<p>Bot: Creating new article from JSON</p> <p><b>New page</b></p><div>💥 &#039;&#039;&#039;Clash cover&#039;&#039;&#039; is a type of [[Definition:Reinsurance | reinsurance]] protection that responds when a single catastrophic event or set of related circumstances triggers [[Definition:Claim | claims]] across multiple [[Definition:Insurance policy | policies]], [[Definition:Line of business | lines of business]], or [[Definition:Reinsurance treaty | treaties]] within the same [[Definition:Cedent | ceding company&#039;s]] portfolio. Unlike a standard [[Definition:Per-risk excess of loss reinsurance | per-risk excess of loss]] treaty—which addresses losses from individual risks—clash cover aggregates the impact of one event that simultaneously affects several otherwise independent exposures, protecting the [[Definition:Insurance carrier | insurer]] from a concentration of losses it did not anticipate at the individual policy level.<br /> <br /> ⚙️ Consider a chemical plant explosion that generates [[Definition:Property insurance | property]] damage claims under a commercial policy, [[Definition:Workers&#039; compensation insurance | workers&#039; compensation]] claims for injured employees, [[Definition:General liability insurance | general liability]] claims from neighboring businesses, and [[Definition:Environmental liability insurance | environmental liability]] claims for contamination—all written by the same carrier. Each policy sits in a different book, potentially protected by different [[Definition:Excess of loss reinsurance | excess of loss]] layers, yet the aggregate drain on the insurer&#039;s capital stems from one occurrence. Clash cover sits above those individual program retentions and catches the combined loss that spills over, typically structured as a [[Definition:Per-occurrence excess of loss reinsurance | per-occurrence excess of loss]] layer with a [[Definition:Retention | retention]] set higher than any single-program attachment point.<br /> <br /> 🛡️ Without clash cover, a [[Definition:Reinsurance program | reinsurance program]] can appear robust on a line-by-line basis yet still leave the ceding company dangerously exposed to a multi-line event. This gap becomes especially significant for diversified carriers and [[Definition:Lloyd&#039;s syndicate | Lloyd&#039;s syndicates]] that underwrite across many classes. [[Definition:Reinsurance broker | Reinsurance brokers]] typically structure clash cover during the annual treaty renewal, stress-testing scenarios with [[Definition:Catastrophe model | catastrophe models]] to calibrate the appropriate attachment point and limit, ensuring the program absorbs realistic worst-case aggregation.<br /> <br /> &#039;&#039;&#039;Related concepts:&#039;&#039;&#039;<br /> {{Div col|colwidth=20em}}<br /> * [[Definition:Excess of loss reinsurance]]<br /> * [[Definition:Catastrophe reinsurance]]<br /> * [[Definition:Aggregation risk]]<br /> * [[Definition:Per-occurrence excess of loss reinsurance]]<br /> * [[Definition:Reinsurance program]]<br /> * [[Definition:Cedent]]<br /> {{Div col end}}</div>

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