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== biz/books == |
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'''Did you know?''' |
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'''business''' ▸ {{!}} |
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__NOCACHE__ |
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[[sales & marketing ▸]] {{!}} |
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{{#switch: {{#expr: {{CURRENTTIMESTAMP}} mod 100}} |
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[[products ▸]] {{!}} |
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| 0 = {{:Definition:Bordereaux}} |
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[[strategy ▸]] {{!}} |
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| 1 = {{:Definition:Burning cost}} |
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| 2 = {{:Definition:Commutation (reinsurance)}} |
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'''career''' ▸ {{!}} |
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| 3 = {{:Definition:Finite reinsurance}} |
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[[leadership ▸]] {{!}} |
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| 4 = {{:Definition:Fronting}} |
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[[presentation ▸]] {{!}} |
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| 5 = {{:Definition:Follow-the-fortunes}} |
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{{Inline expand | productivity ▸|{{read|[[Atomic Habits]]}} {{read|[[The 7 Habits of Highly Effective People]]}} {{read|[[The Power of Habit]]}} {{read|[[see all ▸]]}}}} {{!}} |
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| 6 = {{:Definition:Cut-through clause}} |
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[[writing ▸]] {{!}} |
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| 7 = {{:Definition:Binding authority}} |
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| 8 = {{:Definition:Clash cover}} |
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'''investing''' ▸ {{!}} [[value ▸]] {{!}} [[growth ▸]] |
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| 9 = {{:Definition:Attachment point}} |
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| 10 = {{:Definition:Exhaustion point}} |
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| 11 = {{:Definition:Reinstatement premium}} |
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{{Section separator}} |
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| 12 = {{:Definition:Sliding-scale commission}} |
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| 13 = {{:Definition:Profit commission}} |
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== biz/people == |
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| 14 = {{:Definition:Loss portfolio transfer}} |
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'''CEOs''' ▸ {{!}} |
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| 15 = {{:Definition:Adverse development cover (ADC)}} |
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{{Inline expand | DOW 30 ▸|{{read|[[Henrique Braun|Coca-Cola]]}} {{read|[[David Solomon|Goldman Sachs]]}} {{read|[[Bob Iger|Walt Disney]]}} {{read|[[Kelly Ortberg|Boeing]]}} {{read|[[Stephen Hemsley|UnitedHealth]]}} {{read|[[CEOs of DJIA companies|see all ▸]]}} }} {{!}} |
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| 16 = {{:Definition:Aggregate excess-of-loss reinsurance}} |
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[[CEOs of Nasdaq-100 companies|Nasdaq-100 ▸]] {{!}} |
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| 17 = {{:Definition:Catastrophe excess-of-loss reinsurance}} |
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[[CEOs of FTSE 100 companies|FTSE 100 ▸]] {{!}} |
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| 18 = {{:Definition:Per-risk excess of loss reinsurance}} |
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[[CEOs of DAX companies|DAX 40 ▸]] {{!}} |
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| 19 = {{:Definition:Risks-attaching basis}} |
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[[CEOs of CAC 40 companies|CAC 40 ▸]] {{!}} |
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| 20 = {{:Definition:Losses-occurring basis}} |
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[[CEOs of EURO STOXX 50 companies|EURO STOXX 50 ▸]] {{!}} |
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| 21 = {{:Definition:Claims-made trigger}} |
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[[CEOs of SMI companies|SMI ▸]] {{!}} |
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| 22 = {{:Definition:Signing down}} |
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[[CEOs of S&P/TSX 60 companies|S&P/TSX 60 ▸]] {{!}} |
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| 23 = {{:Definition:Sunset clause}} |
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[[CEOs of NIFTY 50 companies|NIFTY 50 ▸]] {{!}} |
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| 24 = {{:Definition:Utmost good faith}} |
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[[CEOs of HSI companies|HSI ▸]] {{!}} |
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| 25 = {{:Definition:Contra proferentem}} |
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| 26 = {{:Definition:Incurred but not reported (IBNR)}} |
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'''quotes''' ▸ {{!}} |
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| 27 = {{:Definition:Bornhuetter-Ferguson method}} |
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{{Inline expand |business ▸|{{read|[[Notable quotes about accounting|accounting]]}} {{read|[[Notable quotes about advertising | advertising]]}} {{read|[[Notable quotes about customers | customers]]}} {{read|[[Notable quotes about employees|employees]]}} {{read|[[Notable quotes about marketing|marketing]]}} {{read|[[Notable quotes about sales|sales]]}} {{read|[[Notable quotes about strategy|strategy]]}} {{read|[[see all ▸]]}} }} {{!}} |
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| 28 = {{:Definition:Chain-ladder method}} |
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{{Inline expand|career ▸|{{read|[[leadership]]}} {{read|[[productivity]]}} }} {{!}} |
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| 29 = {{:Definition:Stochastic reserving}} |
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{{Inline expand|investing ▸|{{read|[[value]]}} {{read|[[growth]]}} }} {{!}} |
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| 30 = {{:Definition:Loss development triangle}} |
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| 31 = {{:Definition:Credibility factor}} |
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{{Section separator}} |
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| 32 = {{:Definition:Allocated loss adjustment expense (ALAE)}} |
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| 33 = {{:Definition:Unallocated loss adjustment expense (ULAE)}} |
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| 34 = {{:Definition:Experience modification factor}} |
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| 35 = {{:Definition:Industry loss warranty (ILW)}} |
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| 36 = {{:Definition:Sidecar (reinsurance)}} |
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| 37 = {{:Definition:Collateralized reinsurance}} |
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| 38 = {{:Definition:Catastrophe bond (CAT bond)}} |
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| 39 = {{:Definition:Retrocession}} |
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| 40 = {{:Definition:Surplus share reinsurance}} |
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| 41 = {{:Definition:Surplus strain}} |
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| 42 = {{:Definition:Surplus relief}} |
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| 43 = {{:Definition:Funds withheld reinsurance}} |
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| 44 = {{:Definition:Modified coinsurance}} |
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| 45 = {{:Definition:Coinsurance penalty}} |
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| 46 = {{:Definition:Anti-concurrent causation clause}} |
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| 47 = {{:Definition:Continuous trigger}} |
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| 48 = {{:Definition:Efficient proximate cause}} |
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| 49 = {{:Definition:Horizontal exhaustion}} |
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| 50 = {{:Definition:Vertical exhaustion}} |
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| 51 = {{:Definition:Sue and labor clause}} |
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| 52 = {{:Definition:Honorable engagement clause}} |
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| 53 = {{:Definition:Hours clause}} |
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| 54 = {{:Definition:Batch clause}} |
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| 55 = {{:Definition:Aggregation clause}} |
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| 56 = {{:Definition:Omnibus clause}} |
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| 57 = {{:Definition:Running down clause}} |
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| 58 = {{:Definition:Warehouse-to-warehouse clause}} |
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| 59 = {{:Definition:General average}} |
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| 60 = {{:Definition:Particular average}} |
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| 61 = {{:Definition:Constructive total loss}} |
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| 62 = {{:Definition:York-Antwerp Rules}} |
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| 63 = {{:Definition:Protection and indemnity (P&I)}} |
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| 64 = {{:Definition:Demand surge}} |
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| 65 = {{:Definition:Social inflation}} |
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| 66 = {{:Definition:Nuclear verdict}} |
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| 67 = {{:Definition:Silent cyber}} |
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| 68 = {{:Definition:Affirmative cyber coverage}} |
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| 69 = {{:Definition:Parametric insurance}} |
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| 70 = {{:Definition:Embedded insurance}} |
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| 71 = {{:Definition:Takaful}} |
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| 72 = {{:Definition:Bancassurance}} |
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| 73 = {{:Definition:Microinsurance}} |
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| 74 = {{:Definition:Captive insurance company}} |
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| 75 = {{:Definition:Cell captive}} |
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| 76 = {{:Definition:Protected cell company (PCC)}} |
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| 77 = {{:Definition:Reciprocal insurance exchange}} |
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| 78 = {{:Definition:Risk retention group (RRG)}} |
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| 79 = {{:Definition:Lloyd's syndicate}} |
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| 80 = {{:Definition:Reinsurance to close (RITC)}} |
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| 81 = {{:Definition:Equitas}} |
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| 82 = {{:Definition:Funds at Lloyd's (FAL)}} |
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| 83 = {{:Definition:Syndicate-in-a-box (SIAB)}} |
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| 84 = {{:Definition:Part VII transfer}} |
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| 85 = {{:Definition:Solvent scheme of arrangement}} |
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| 86 = {{:Definition:Run-off (insurance)}} |
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| 87 = {{:Definition:Demutualization}} |
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| 88 = {{:Definition:Depopulation program}} |
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| 89 = {{:Definition:Probable maximum loss (PML)}} |
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| 90 = {{:Definition:Exceedance probability curve (EP curve)}} |
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| 91 = {{:Definition:Realistic disaster scenario (RDS)}} |
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| 92 = {{:Definition:Monte Carlo simulation}} |
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| 93 = {{:Definition:Copula}} |
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| 94 = {{:Definition:Bühlmann model}} |
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| 95 = {{:Definition:Cape Cod method}} |
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| 96 = {{:Definition:Extra-contractual obligation (ECO)}} |
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| 97 = {{:Definition:Loss in excess of policy limits (XPL)}} |
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| 98 = {{:Definition:Doctrine of reasonable expectations}} |
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| 99 = {{:Definition:Longevity swap}} |
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}} |
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Latest revision as of 22:46, 12 March 2026
Did you know?
🔒 Industry loss warranty (ILW) is a reinsurance or financial market instrument that pays out when total industry losses from a specified event exceed a predetermined threshold. Unlike traditional reinsurance, which indemnifies a cedent based on its own actual losses, an ILW uses an objective, market-wide loss index — typically reported by PCS or a comparable authority — as its primary trigger. Most ILWs also include a dual-trigger structure requiring the buyer to demonstrate that it sustained a minimum level of loss itself, ensuring there is a genuine economic interest underlying the contract.
⚙️ In practice, an ILW transaction begins with the buyer (usually a reinsurer or large insurer) selecting a coverage layer defined by an industry loss attachment point — for example, $50 billion in U.S. hurricane losses. If the reported industry loss from a qualifying event reaches or exceeds that figure, and the buyer meets its own loss warranty, the contract pays the agreed amount. ILWs can be structured as either reinsurance contracts or as derivatives traded in the capital markets, and they are available on a per-occurrence or aggregate annual basis. Settlement depends on the official industry loss determination, which can take months to finalize as claims develop and IBNR estimates stabilize.
📈 ILWs occupy a valuable niche because they combine speed of execution with simplicity. Buyers can secure large amounts of catastrophe protection relatively quickly, often with less disclosure than a traditional excess-of-loss placement requires, since the payout depends on a public index rather than granular portfolio data. For sellers — including hedge funds, ILS funds, and traditional reinsurers — ILWs offer diversified catastrophe exposure without the complexity of individual company underwriting analysis. However, ILWs carry basis risk: the possibility that industry losses trigger a payout while the buyer's own losses remain modest, or vice versa. Managing this basis risk is central to how sophisticated buyers incorporate ILWs into their broader reinsurance programs.
Related concepts