A type of reinsurance in which the reinsurer does not share similar proportions of the premiums earned and the claims incurred by the reassured plus certain associated expenses. Compare proportional reinsurance. Excess of loss reinsurance is an example of non-proportional reinsurance.
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UK: any form of reinsurance which is not proportional reinsurance.
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UK: Reinsurance in which the cover is not in direct proportion to the reinsured’s loss as in quota share and surplus treaties. The reinsurer accepts liability wholly or partly on individual losses or losses on the whole account when they exceed an excess point (an attachment point) subject to an upper limit. Most non-proportional reinsurances are structured around excess of loss reinsurance. See EXCESS OF LOSS RATIO; EXCESS PER OCCURENCE; EXCESS PER RISK.
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REINSURANCE,REFERENCE: See: Excess of Loss Reinsurance.