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== biz/books == |
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'''business''' ▸ {{!}} {{Inline expand |sales & marketing ▸}} {{!}} {{Inline expand |products ▸}} {{!}} {{Inline expand |strategy ▸}} {{!}} |
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'''career''' ▸ {{!}} {{Inline expand |leadership ▸}} {{!}} {{Inline expand |presentation ▸}} {{!}} {{Inline expand |productivity ▸}}|{{read|[[Atomic Habits]]}} {{read|[[The 7 Habits of Highly Effective People]]}} {{read|[[The Power of Habit]]}} {{read|[[see all ▸]]|type=gray}} }} {{!}} |
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'''investing''' ▸ {{!}} {{Inline expand |value ▸}} {{!}} {{Inline expand |growth ▸}} {{!}} |
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'''Did you know?''' |
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== biz/people == |
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| 0 = {{:Definition:Bordereaux}} |
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<div class="main-page-menu"> |
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| 1 = {{:Definition:Burning cost}} |
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'''CEOs''' ▸ {{!}} {{Inline expand |S&P 500 ▸|{{read|[[Warren Buffett|Berkshire Hathaway]]}} {{read|[[Darren Woods|ExxonMobil]]}} {{read|[[David Ricks|Eli Lilly]]}} {{read|[[Michael Miebach|Mastercard]]}} {{read|[[Jamie Dimon|JPMorgan Chase]]}} {{read|[[CEOs of S&P 500 companies|see all ▸]]|type=gray}} }} {{!}} {{Inline expand |NASDAQ 100 ▸|{{read|[[Sundar Pichai|Alphabet]]}} {{read|[[Mark Zuckerberg|Meta]]}} {{read|[[Elon Musk|Tesla]]}} {{read|[[Ted Sarandos|Netflix]]}} {{read|[[Ron Vachris|Costco]]}} {{read|[[CEOs of Nasdaq-100 companies|see all ▸]]|type=gray}} }} {{!}} {{Inline expand |DOW 30 ▸|{{read|[[Tim Cook|Apple]]}} {{read|[[Satya Nadella|Microsoft]]}} {{read|[[Jensen Huang|NVIDIA]]}} {{read|[[Andy Jassy|Amazon]]}} {{read|[[Kelly Ortberg|Boeing]]}} {{read|[[CEOs of DJIA companies|see all ▸]]|type=gray}} }} {{!}} {{Inline expand |S&P/TSX 60 ▸|{{read|[[David McKay|Royal Bank of Canada]]}} {{read|[[Raymond Chun|TD Bank]]}} {{read|[[Tobias Lütke|Shopify]]}} {{read|[[Greg Ebel|Enbridge]]}} {{read|[[Tracy Robinson|Canadian National]]}} {{read|[[CEOs of S&P/TSX 60 companies|see all ▸]]|type=gray}} }} {{!}} {{Inline expand |FTSE 100 ▸|{{read|[[Wael Sawan|Shell]]}} {{read|[[Pascal Soriot|AstraZeneca]]}} {{read|[[Georges Elhedery|HSBC]]}} {{read|[[Hein Schumacher|Unilever]]}} {{read|[[Simon Trott|Rio Tinto]]}} {{read|[[List of FTSE 100 companies|see all ▸]]|type=gray}} }} {{!}} {{Inline expand |EURO STOXX 50 ▸|{{read|[[Christophe Fouquet|ASML]]}} {{read|[[Bernard Arnault|LVMH]]}} {{read|[[Christian Klein|SAP]]}} {{read|[[Olivier Blum|Schneider Electric]]}} {{read|[[Patrick Pouyanné|TotalEnergies]]}} {{read|[[CEOs of EURO STOXX 50 companies|see all ▸]]|type=gray}} }} {{!}} {{Inline expand |DAX 40 ▸|{{read|[[Roland Busch|Siemens]]}} {{read|[[Oliver Blume|Volkswagen]]}} {{read|[[Oliver Bäte|Allianz]]}} {{read|[[Timotheus Höttges|Deutsche Telekom]]}} {{read|[[Ola Källenius|Mercedes-Benz]]}} {{read|[[CEOs of DAX companies|see all ▸]]|type=gray}} }} {{!}} {{Inline expand |CAC 40 ▸|{{read|[[Nicolas Hieronimus|L'Oréal]]}} {{read|[[Axel Dumas|Hermès]]}} {{read|[[Thomas Buberl|AXA]]}} {{read|[[Guillaume Faury|Airbus]]}} {{read|[[Paul Hudson|Sanofi]]}} {{read|[[CEOs of CAC 40 companies|see all ▸]]|type=gray}} }} {{!}} {{Inline expand |SMI ▸|{{read|[[Philipp Navratil|Nestlé]]}} {{read|[[Thomas Schinecker|Roche]]}} {{read|[[Vasant Narasimhan|Novartis]]}} {{read|[[Sergio Ermotti|UBS]]}} {{read|[[Morten Wierod|ABB]]}} {{read|[[CEOs of SMI companies|see all ▸]]|type=gray}} }} {{!}} |
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| 2 = {{:Definition:Commutation (reinsurance)}} |
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| 3 = {{:Definition:Finite reinsurance}} |
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'''quotes''' ▸ {{!}} {{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|[[placeholder|marketing]]}} {{read|[[placeholder|sales]]}} {{read|[[Notable quotes about strategy|strategy]]}} {{read|[[see all ▸]]|type=gray}} }} {{!}} {{Inline expand|career ▸|{{read|[[leadership]]}} {{read|[[productivity]]}} }} {{!}} {{Inline expand|investing ▸|{{read|[[placeholder|value]]}} {{read|[[placeholder|growth]]}} }} {{!}} |
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| 4 = {{:Definition:Fronting}} |
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| 5 = {{:Definition:Follow-the-fortunes}} |
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| 6 = {{:Definition:Cut-through clause}} |
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| 7 = {{:Definition:Binding authority}} |
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| 8 = {{:Definition:Clash cover}} |
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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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| 12 = {{:Definition:Sliding-scale commission}} |
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| 13 = {{:Definition:Profit commission}} |
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| 14 = {{:Definition:Loss portfolio transfer}} |
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| 15 = {{:Definition:Adverse development cover (ADC)}} |
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| 16 = {{:Definition:Aggregate excess-of-loss reinsurance}} |
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| 17 = {{:Definition:Catastrophe excess-of-loss reinsurance}} |
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| 18 = {{:Definition:Per-risk excess of loss reinsurance}} |
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| 19 = {{:Definition:Risks-attaching basis}} |
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| 20 = {{:Definition:Losses-occurring basis}} |
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| 21 = {{:Definition:Claims-made trigger}} |
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| 22 = {{:Definition:Signing down}} |
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| 23 = {{:Definition:Sunset clause}} |
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| 24 = {{:Definition:Utmost good faith}} |
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| 25 = {{:Definition:Contra proferentem}} |
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| 26 = {{:Definition:Incurred but not reported (IBNR)}} |
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| 27 = {{:Definition:Bornhuetter-Ferguson method}} |
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| 28 = {{:Definition:Chain-ladder method}} |
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| 29 = {{:Definition:Stochastic reserving}} |
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| 30 = {{:Definition:Loss development triangle}} |
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| 31 = {{:Definition:Credibility factor}} |
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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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Latest revision as of 22:46, 12 March 2026
Did you know?
🛡️ Adverse development cover (ADC) is a reinsurance contract that protects an insurer against the possibility that its existing loss reserves for claims already incurred will prove insufficient over time. Unlike traditional reinsurance that covers future losses, an ADC specifically addresses reserves that have already been established — stepping in when actual claim payments exceed the level the insurer originally anticipated. It is a form of retroactive reinsurance, meaning it covers liabilities from events that have already occurred but whose ultimate cost remains uncertain.
⚙️ Under a typical ADC arrangement, the ceding insurer selects a specific block of business or accident year and sets an attachment point — a dollar threshold above its carried reserves. If cumulative claim payments on that portfolio breach the attachment point, the reinsurer begins reimbursing the cedent up to a predetermined limit. The premium for this protection reflects the reinsurer's assessment of how likely and how severely reserves may deteriorate, informed by actuarial analysis and independent reserve studies. The contract may also include provisions governing how claims are administered and reported during the coverage period.
📊 ADCs play a critical role in stabilizing an insurer's financial position, particularly during mergers and acquisitions, corporate restructurings, or when an insurer is exiting a line of business with long-tail liability exposure. By capping downside reserve risk, the cover gives management, investors, and regulators greater confidence in the company's balance sheet. For acquirers purchasing a book of business, an ADC can make a transaction viable by ring-fencing legacy uncertainty. Rating agencies also view well-structured ADCs favorably, as they reduce earnings volatility and demonstrate prudent risk management.
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