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What is a tentative plan?

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Anonymous

9y ago
Updated: 4/9/2022

Tent Plan Reinsurance is a form of treaty reinsurance that covers multiple lines of business and is based on a non proportional / Excess of Loss basis.

Similar to an umbrella, but attaching at the frequency level. This makes sense to insurers, that have many smaller lines of business which would be too uneconomical for a normal and seperate XoL structure.

For example: Insurer A writes some Fire, Engineering, Personal Accident, Marine and Surety business. In order to protect from large losses, the company could buy one XoL for instance 450k USD in excess of 150k USD for all these lines of business.

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Abbie Hyatt

Lvl 13
3y ago

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