Reinsurance Applications
Quantitative tools for treaty structuring, pricing, catastrophe modelling and portfolio optimisation — covering proportional and non-proportional reinsurance across property, casualty and specialty lines. The XL Reinsurance Model tab provides a live Excess-of-Loss demo: enter your gross losses, set a retention and limit, and see how the treaty filters losses between cedant and reinsurer.
What is Reinsurance?
Insurance purchased by insurers (cedants) to protect against large or catastrophic losses — enabling risk transfer, earnings stabilisation and regulatory capital relief.
Treaty vs. Facultative
Treaties are pre-agreed contracts covering entire portfolios automatically. Facultative covers individual risks, negotiated per-risk. Most large organisations use both.
Proportional vs. Non-Proportional
Proportional (Quota Share, Surplus) — premium and losses shared in a fixed ratio. Non-Proportional (XL, Stop Loss) — reinsurer pays losses above a retention up to a limit.