Cumulative liability is the total of the limits of liability that an insurer or reinsurer has outstanding on a single risk. It includes all contracts from various insurers and covers all lines of coverage for that risk.
A provision in a reinsurance contract that holds the reinsurer liable for its share of claims even if the primary insurer is insolvent.
Lloyd's of London is a unique insurance market composed of various syndicates specializing in particular risks, offering insurance and reinsurance solutions for a wide spectrum of needs.
Portfolio reinsurance is a coverage mechanism where an insurance company's portfolio is ceded to a reinsurer, who reinsures a given percentage of a particular line of business. This approach allows the primary insurer to mitigate risk exposure by transferring some of its liabilities to the reinsurer.
Reinsurance is an agreement by which one insurer indemnifies another insurer in part, or in total, for the risks of a policy issued by that other insurer, helping manage and mitigate potential losses.
