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== biz/books ==
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'''business''' ▸ {{nowrap|&nbsp;{{!}}&nbsp;}} {{Inline expand |{{nowrap|sales & marketing ▸}}}}{{nowrap|&nbsp;{{!}}&nbsp;}} {{Inline expand |{{nowrap|products ▸}}}}{{nowrap|&nbsp;{{!}}&nbsp;}} {{Inline expand |{{nowrap|strategy ▸}}}}{{nowrap|&nbsp;{{!}}&nbsp;}}

'''career''' ▸ {{nowrap|&nbsp;{{!}}&nbsp;}} {{Inline expand |{{nowrap|leadership ▸}}}}{{nowrap|&nbsp;{{!}}&nbsp;}} {{Inline expand |{{nowrap|presentation ▸}}}}{{nowrap|&nbsp;{{!}}&nbsp;}} {{Inline expand |{{nowrap|productivity ▸}}|{{read|[[Atomic Habits]]}} {{read|[[The 7 Habits of Highly Effective People]]}} {{read|[[The Power of Habit]]}} {{read|{{nowrap|[[see all ▸]]}}|type=gray}} }}{{nowrap|&nbsp;{{!}}&nbsp;}}

'''investing''' ▸ {{nowrap|&nbsp;{{!}}&nbsp;}} {{Inline expand |{{nowrap|value ▸}}}}{{nowrap|&nbsp;{{!}}&nbsp;}} {{Inline expand |{{nowrap|growth ▸}}}}{{nowrap|&nbsp;{{!}}&nbsp;}}
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'''Did you know?'''
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== biz/people ==
| 0 = {{:Definition:Bordereaux}}
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| 1 = {{:Definition:Burning cost}}
'''CEOs''' ▸ {{nowrap|&nbsp;{{!}}&nbsp;}} {{Inline expand |{{nowrap|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|{{nowrap|[[CEOs of S&P 500 companies|see all ▸]]}}|type=gray}} }}{{nowrap|&nbsp;{{!}}&nbsp;}} {{Inline expand |{{nowrap|NASDAQ 100 ▸}}|{{read|[[Sundar Pichai|Alphabet]]}} {{read|[[Mark Zuckerberg|Meta]]}} {{read|[[Elon Musk|Tesla]]}} {{read|[[Ted Sarandos|Netflix]]}} {{read|[[Ron Vachris|Costco]]}} {{read|{{nowrap|[[CEOs of Nasdaq-100 companies|see all ▸]]}}|type=gray}} }}{{nowrap|&nbsp;{{!}}&nbsp;}} {{Inline expand |{{nowrap|DOW 30 ▸}}|{{read|[[Tim Cook|Apple]]}} {{read|[[Satya Nadella|Microsoft]]}} {{read|[[Jensen Huang|NVIDIA]]}} {{read|[[Andy Jassy|Amazon]]}} {{read|[[Kelly Ortberg|Boeing]]}} {{read|{{nowrap|[[CEOs of DJIA companies|see all ▸]]}}|type=gray}} }}{{nowrap|&nbsp;{{!}}&nbsp;}} {{Inline expand |{{nowrap|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|{{nowrap|[[CEOs of S&P/TSX 60 companies|see all ▸]]}}|type=gray}} }}{{nowrap|&nbsp;{{!}}&nbsp;}} {{Inline expand |{{nowrap|FTSE 100 ▸}}|{{read|[[Wael Sawan|Shell]]}} {{read|[[Pascal Soriot|AstraZeneca]]}} {{read|[[Georges Elhedery|HSBC]]}} {{read|[[Hein Schumacher|Unilever]]}} {{read|[[Simon Trott|Rio Tinto]]}} {{read|{{nowrap|[[List of FTSE 100 companies|see all ▸]]}}|type=gray}} }}{{nowrap|&nbsp;{{!}}&nbsp;}} {{Inline expand |{{nowrap|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|{{nowrap|[[CEOs of EURO STOXX 50 companies|see all ▸]]}}|type=gray}} }}{{nowrap|&nbsp;{{!}}&nbsp;}} {{Inline expand |{{nowrap|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|{{nowrap|[[CEOs of DAX companies|see all ▸]]}}|type=gray}} }}{{nowrap|&nbsp;{{!}}&nbsp;}} {{Inline expand |CAC&nbsp;40&nbsp;▸|{{read|[[Nicolas Hieronimus|L'Oréal]]}} {{read|[[Axel Dumas|Hermès]]}} {{read|[[Thomas Buberl|AXA]]}} {{read|[[Guillaume Faury|Airbus]]}} {{read|[[Paul Hudson|Sanofi]]}} {{read|{{nowrap|[[CEOs of CAC 40 companies|see all ▸]]}}|type=gray}} }}{{nowrap|&nbsp;{{!}}&nbsp;}} {{Inline expand |{{nowrap|SMI ▸}}|{{read|[[Philipp Navratil|Nestlé]]}} {{read|[[Thomas Schinecker|Roche]]}} {{read|[[Vasant Narasimhan|Novartis]]}} {{read|[[Sergio Ermotti|UBS]]}} {{read|[[Morten Wierod|ABB]]}} {{read|{{nowrap|[[CEOs of SMI companies|see all ▸]]}}|type=gray}} }}{{nowrap|&nbsp;{{!}}&nbsp;}}
| 2 = {{:Definition:Commutation (reinsurance)}}

| 3 = {{:Definition:Finite reinsurance}}
'''quotes''' ▸ {{nowrap|&nbsp;{{!}}&nbsp;}} {{Inline expand |{{nowrap|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|{{nowrap|[[see all ▸]]}}|type=gray}} }}{{nowrap|&nbsp;{{!}}&nbsp;}} {{Inline expand|{{nowrap|career ▸}}|{{read|[[leadership]]}} {{read|[[productivity]]}} }}{{nowrap|&nbsp;{{!}}&nbsp;}} {{Inline expand|{{nowrap|investing ▸}}|{{read|[[placeholder|value]]}} {{read|[[placeholder|growth]]}} }}{{nowrap|&nbsp;{{!}}&nbsp;}}
| 4 = {{:Definition:Fronting}}
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| 6 = {{:Definition:Cut-through clause}}
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| 7 = {{:Definition:Binding authority}}
| 8 = {{:Definition:Clash cover}}
| 9 = {{:Definition:Attachment point}}
| 10 = {{:Definition:Exhaustion point}}
| 11 = {{:Definition:Reinstatement premium}}
| 12 = {{:Definition:Sliding-scale commission}}
| 13 = {{:Definition:Profit commission}}
| 14 = {{:Definition:Loss portfolio transfer}}
| 15 = {{:Definition:Adverse development cover (ADC)}}
| 16 = {{:Definition:Aggregate excess-of-loss reinsurance}}
| 17 = {{:Definition:Catastrophe excess-of-loss reinsurance}}
| 18 = {{:Definition:Per-risk excess of loss reinsurance}}
| 19 = {{:Definition:Risks-attaching basis}}
| 20 = {{:Definition:Losses-occurring basis}}
| 21 = {{:Definition:Claims-made trigger}}
| 22 = {{:Definition:Signing down}}
| 23 = {{:Definition:Sunset clause}}
| 24 = {{:Definition:Utmost good faith}}
| 25 = {{:Definition:Contra proferentem}}
| 26 = {{:Definition:Incurred but not reported (IBNR)}}
| 27 = {{:Definition:Bornhuetter-Ferguson method}}
| 28 = {{:Definition:Chain-ladder method}}
| 29 = {{:Definition:Stochastic reserving}}
| 30 = {{:Definition:Loss development triangle}}
| 31 = {{:Definition:Credibility factor}}
| 32 = {{:Definition:Allocated loss adjustment expense (ALAE)}}
| 33 = {{:Definition:Unallocated loss adjustment expense (ULAE)}}
| 34 = {{:Definition:Experience modification factor}}
| 35 = {{:Definition:Industry loss warranty (ILW)}}
| 36 = {{:Definition:Sidecar (reinsurance)}}
| 37 = {{:Definition:Collateralized reinsurance}}
| 38 = {{:Definition:Catastrophe bond (CAT bond)}}
| 39 = {{:Definition:Retrocession}}
| 40 = {{:Definition:Surplus share reinsurance}}
| 41 = {{:Definition:Surplus strain}}
| 42 = {{:Definition:Surplus relief}}
| 43 = {{:Definition:Funds withheld reinsurance}}
| 44 = {{:Definition:Modified coinsurance}}
| 45 = {{:Definition:Coinsurance penalty}}
| 46 = {{:Definition:Anti-concurrent causation clause}}
| 47 = {{:Definition:Continuous trigger}}
| 48 = {{:Definition:Efficient proximate cause}}
| 49 = {{:Definition:Horizontal exhaustion}}
| 50 = {{:Definition:Vertical exhaustion}}
| 51 = {{:Definition:Sue and labor clause}}
| 52 = {{:Definition:Honorable engagement clause}}
| 53 = {{:Definition:Hours clause}}
| 54 = {{:Definition:Batch clause}}
| 55 = {{:Definition:Aggregation clause}}
| 56 = {{:Definition:Omnibus clause}}
| 57 = {{:Definition:Running down clause}}
| 58 = {{:Definition:Warehouse-to-warehouse clause}}
| 59 = {{:Definition:General average}}
| 60 = {{:Definition:Particular average}}
| 61 = {{:Definition:Constructive total loss}}
| 62 = {{:Definition:York-Antwerp Rules}}
| 63 = {{:Definition:Protection and indemnity (P&I)}}
| 64 = {{:Definition:Demand surge}}
| 65 = {{:Definition:Social inflation}}
| 66 = {{:Definition:Nuclear verdict}}
| 67 = {{:Definition:Silent cyber}}
| 68 = {{:Definition:Affirmative cyber coverage}}
| 69 = {{:Definition:Parametric insurance}}
| 70 = {{:Definition:Embedded insurance}}
| 71 = {{:Definition:Takaful}}
| 72 = {{:Definition:Bancassurance}}
| 73 = {{:Definition:Microinsurance}}
| 74 = {{:Definition:Captive insurance company}}
| 75 = {{:Definition:Cell captive}}
| 76 = {{:Definition:Protected cell company (PCC)}}
| 77 = {{:Definition:Reciprocal insurance exchange}}
| 78 = {{:Definition:Risk retention group (RRG)}}
| 79 = {{:Definition:Lloyd's syndicate}}
| 80 = {{:Definition:Reinsurance to close (RITC)}}
| 81 = {{:Definition:Equitas}}
| 82 = {{:Definition:Funds at Lloyd's (FAL)}}
| 83 = {{:Definition:Syndicate-in-a-box (SIAB)}}
| 84 = {{:Definition:Part VII transfer}}
| 85 = {{:Definition:Solvent scheme of arrangement}}
| 86 = {{:Definition:Run-off (insurance)}}
| 87 = {{:Definition:Demutualization}}
| 88 = {{:Definition:Depopulation program}}
| 89 = {{:Definition:Probable maximum loss (PML)}}
| 90 = {{:Definition:Exceedance probability curve (EP curve)}}
| 91 = {{:Definition:Realistic disaster scenario (RDS)}}
| 92 = {{:Definition:Monte Carlo simulation}}
| 93 = {{:Definition:Copula}}
| 94 = {{:Definition:Bühlmann model}}
| 95 = {{:Definition:Cape Cod method}}
| 96 = {{:Definition:Extra-contractual obligation (ECO)}}
| 97 = {{:Definition:Loss in excess of policy limits (XPL)}}
| 98 = {{:Definition:Doctrine of reasonable expectations}}
| 99 = {{:Definition:Longevity swap}}
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Latest revision as of 22:46, 12 March 2026

Did you know?

🚗 Sidecar (reinsurance) is a special-purpose vehicle created by a reinsurer or insurer to allow third-party investors to participate directly in a defined book of reinsurance business for a limited period, sharing in both the premiums and the losses on a proportional basis. Sidecars emerged prominently after the 2005 Atlantic hurricane season, when the market needed to replenish underwriting capacity rapidly and investors sought short-duration exposure to insurance risk. Unlike catastrophe bonds, which transfer a specific layer of risk via capital markets instruments, a sidecar typically mirrors a slice of the sponsor's existing portfolio through a quota share arrangement.

🔧 The sponsor — usually a well-established reinsurer — sets up the sidecar as a legally separate entity, often domiciled in Bermuda or another favorable jurisdiction. Investors contribute capital to the vehicle, and the sidecar then enters into a quota share or similar reinsurance contract with the sponsor, assuming a predetermined percentage of premiums and losses on a specific portfolio. The sponsor handles all underwriting, claims handling, and administration, earning a ceding commission and often a profit commission for its services. Because sidecars are typically structured for one to three years, investors gain time-limited, collateralized exposure to insurance risk without committing to the permanent capital structure of a reinsurance company.

💡 Sidecars serve multiple strategic purposes within the reinsurance ecosystem. For sponsors, they provide a flexible mechanism to scale capacity during hard-market conditions without permanently diluting shareholders or increasing balance-sheet leverage. For investors — often ILS funds, hedge funds, and pension funds — sidecars offer a transparent, relatively liquid way to access diversified insurance returns. The limited duration means that capital is returned after the loss development period closes, rather than being locked up indefinitely. However, the vehicle's performance is entirely dependent on the sponsor's underwriting discipline and the quality of the portfolio ceded, which is why investor due diligence focuses heavily on the sponsor's track record, risk selection, and reserving practices.

Related concepts

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