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{{Quote of the day}} |
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'''Did you know?''' |
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__NOCACHE__ |
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== Skill-building book summaries == |
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''Looking to grow your skills? Start with our latest book summaries:'' |
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| 0 = {{:Definition:Bordereaux}} |
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| 1 = {{:Definition:Burning cost}} |
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{{div 2cols}} |
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| 2 = {{:Definition:Commutation (reinsurance)}} |
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| 3 = {{:Definition:Finite reinsurance}} |
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* 🌱 [[Tiny habits (2019) – BJ Fogg]]. Start absurdly small and celebrate to rewire behaviour. |
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| 4 = {{:Definition:Fronting}} |
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| 5 = {{:Definition:Follow-the-fortunes}} |
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* ⚛️ [[Atomic habits (2018) – James Clear]]. Compound small improvements with clear systems. |
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| 6 = {{:Definition:Cut-through clause}} |
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| 7 = {{:Definition:Binding authority}} |
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* 💥[[The power of habit (2012) – Charles Duhigg]]. Use cue–routine–reward to change outcomes. |
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| 8 = {{:Definition:Clash cover}} |
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| 9 = {{:Definition:Attachment point}} |
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* 🥂 [[Never eat alone (2005) – Keith Ferrazzi and Tahl Raz]]. Build relationships with consistent, generous outreach. |
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| 10 = {{:Definition:Exhaustion point}} |
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| 11 = {{:Definition:Reinstatement premium}} |
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* ✅ [[Getting things done (2001) – David Allen]]. Capture and clarify to achieve stress-free productivity. |
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| 12 = {{:Definition:Sliding-scale commission}} |
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| 13 = {{:Definition:Profit commission}} |
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* 🤗 [[How to win friends and influence people (1936) – Dale Carnegie]]. Use timeless rules for rapport and persuasion. |
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| 14 = {{:Definition:Loss portfolio transfer}} |
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| 15 = {{:Definition:Adverse development cover (ADC)}} |
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* More: [[Essential skill-building books]] |
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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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{{div col end}} |
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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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}} |
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Latest revision as of 22:46, 12 March 2026
Did you know?
📋 Loss portfolio transfer is a reinsurance transaction in which an insurer cedes an entire portfolio of outstanding claims reserves — including both reported and incurred but not reported (IBNR) liabilities — to a reinsurer in exchange for a lump-sum premium payment. Unlike prospective reinsurance that covers future losses, a loss portfolio transfer is a form of retroactive reinsurance designed to move existing liabilities off the ceding company's balance sheet. It is commonly used when insurers want to exit a particular line of business, clean up legacy reserves, or prepare for a merger or acquisition.
⚙️ The mechanics hinge on an actuarial valuation of the reserves being transferred. The ceding insurer and the assuming reinsurer negotiate a premium — typically at or near the present value of expected future claim payments — and the reinsurer assumes responsibility for administering and settling the underlying claims. The assuming party takes on both the investment risk and the reserve risk that actual payments may exceed estimates. Regulatory approval is often required, and the transaction must comply with accounting standards governing statutory and GAAP treatment of retroactive reinsurance, which can affect how the financial benefit is recognized on the ceding company's books.
💡 For insurers burdened by long-tail liabilities — such as those arising from asbestos, environmental, or workers' compensation claims — a loss portfolio transfer offers a path to financial clarity and operational focus. By removing unpredictable legacy obligations, the ceding company frees up capital and management attention for more profitable underwriting. For the assuming reinsurer, it represents an investment opportunity: if claims develop more favorably than projected, the margin between the premium received and actual payouts generates profit. This transaction type has grown in strategic importance as run-off specialists and legacy market players have expanded their role in the global insurance ecosystem.
Related concepts: