Reinsurance Underlying Basis

[Anmol KaurParticipant]

 

Risk Attaching vs Loss Occurring basis of Reinsurance :

Risk Attaching:

• Reinsurance covers all claims for policies incepting during the period of reinsurance contract, no matter if the claims arise after the reinsurance contract period has expired.

• Any claims made from policies whose inception wasn’t during the period of reinsurance contract aren’t admissible even if it occurs during the period of reinsurance contract.

Loss Occuring:

· All the claims made during the reinsurance contract period are admissible, no matter what the inception date of those policies is.

· Any claims occurring after the expiration date of reinsurance contract aren’t admissible.

 

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