Proportional and non-proportional reinsurance

What are the differences between proportional and non-proportional reinsurance?

Proportional reinsurance is based on original liability and proportional cession, whereby in the case of non-proportional reinsurance, it is the amount of loss and the cover – limited in amount – which is significant. It is also referred to as “excess of loss reinsurance”.

This brochure explains in detail the main differences between these two types of reinsurance.