https://www.insurerbrain.com/w/index.php?action=history&feed=atom&title=Definition%3APer-occurrence_excess-of-loss_reinsuranceDefinition:Per-occurrence excess-of-loss reinsurance - Revision history2026-05-04T02:58:29ZRevision history for this page on the wikiMediaWiki 1.43.8https://www.insurerbrain.com/w/index.php?title=Definition:Per-occurrence_excess-of-loss_reinsurance&diff=11550&oldid=prevPlumBot: Bot: Creating new article from JSON2026-03-12T00:14:41Z<p>Bot: Creating new article from JSON</p>
<p><b>New page</b></p><div>📋 '''Per-occurrence excess-of-loss reinsurance''' is a [[Definition:Non-proportional reinsurance | non-proportional reinsurance]] arrangement where the [[Definition:Reinsurer | reinsurer]] responds to losses from a single event that breach the [[Definition:Cedent | ceding insurer's]] stated [[Definition:Retention | retention]]. It is functionally synonymous with [[Definition:Per-occurrence excess of loss reinsurance | per-occurrence excess of loss reinsurance]] — the hyphenated and unhyphenated forms appear interchangeably across [[Definition:Reinsurance | reinsurance]] contracts, market reports, and regulatory filings. Whether written as "excess of loss" or "excess-of-loss," the economic substance is identical: protection against severity from discrete occurrences.<br />
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⚙️ Mechanically, the ceding company defines an attachment point and a [[Definition:Policy limit | coverage limit]] for each occurrence. When a qualifying event — a wildfire, a major liability verdict, a single [[Definition:Marine insurance | marine]] loss — produces net claims exceeding the attachment point, the reinsurer pays the excess up to the agreed ceiling. Layering is standard practice: a large insurer might structure its program with multiple excess-of-loss layers, each placed with different reinsurers or [[Definition:Lloyd's syndicate | Lloyd's syndicates]], so that progressively more remote loss scenarios are covered by successive tiers. The [[Definition:Reinstatement | reinstatement]] provisions dictate whether and at what additional [[Definition:Premium | premium]] the coverage resets after a loss recovery.<br />
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💡 This structure is foundational to how the global [[Definition:Reinsurance market | reinsurance market]] distributes [[Definition:Peak peril | peak-peril]] risk. Cedents rely on it to stabilize earnings volatility and satisfy [[Definition:Solvency | solvency]] requirements, while reinsurers use it to deploy capital efficiently against well-defined loss triggers. Brokers such as those operating in the [[Definition:London market | London market]] spend considerable effort negotiating occurrence definitions, [[Definition:Reinstatement | reinstatement]] terms, and exclusion language — details that determine whether a borderline event triggers one or two recoveries. In an era of rising [[Definition:Natural catastrophe | natural catastrophe]] frequency, the precision of these contracts directly shapes the financial resilience of the entire insurance value chain.<br />
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'''Related concepts:'''<br />
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* [[Definition:Per-occurrence excess of loss reinsurance]]<br />
* [[Definition:Non-proportional reinsurance]]<br />
* [[Definition:Reinstatement]]<br />
* [[Definition:Catastrophe reinsurance]]<br />
* [[Definition:Retention]]<br />
* [[Definition:Layered reinsurance program]]<br />
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