8 - 25% January 1
A derivative contract between two parties. One party pays the other party a premium in return for coverage for a specified event that causes industry wide losses that exceed a specified threshold. Maturities are typically one year.
5 - 10% January 1
Privately structured agreements to insure a specific portfolio of insurance contracts against losses from certain perils. Typically one year in maturity.
7 - 30% June 1
(“XOL Retro” & “Cat Bonds”)
Privately structured agreements to insure a pro-rata percentage of portfolio of insurance contracts alongside a global reinsurance company. Typically one year in maturity.
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Industry Loss Warranties