Catastrophe Reinsurance

Examples of such exposures are the potential effect of acts of God such as windstorms to property portfolios or having a number of policyholders affected by a single occurrence under a liability portfolio.

Liability catastrophe reinsurances are generally known as clash covers and often include coverage for run-away costs arising from any individual risk as well as an individual loss involving a number of insureds.

Catastrophe reinsurance always has a finite recovery amount and the emphasis is in the captive and its advisors to ensure that sufficient coverage is purchased for any accumulations of risk after the impact of any quota share or risk excess reinsurance.

Catastrophe reinsurance is normally secured on a losses occurring basis which protects losses happening during the underwriting year, regardless of when the original policies incepted.