About

Reinsurance, taught the way it is actually placed

{{name}} is a study tool for people who work in or around reinsurance and want the vocabulary to stop being vocabulary — to become something they can calculate with.

The problem it solves

Most reinsurance glossaries give you a sentence per term. A sentence is enough to recognise a word in a meeting and not nearly enough to know what it does to a number. You can read the definition of a reinstatement premium ten times and still not be able to say what one costs after a $60M hurricane in October.

So every term here carries five things instead of one: a definition, a worked example, a scenario with real figures in US dollars, two questions with explanations, and a word problem whose answer stays hidden until you have had a go at it.

Who it is for

Primary audience

Working professionals

Underwriters, brokers, claims and finance staff who deal with treaties but were never formally taught them.

Also useful for

New joiners

Graduate intakes and lateral hires from primary insurance who need the ceded side quickly.

And for

Exam candidates

Anyone revising reinsurance modules where the marks are in the calculation, not the definition.

It assumes you know what an insurance policy is and what a loss ratio means. It does not assume you have ever seen a slip.

How the twenty terms were chosen

They are ordered the way a placement is built rather than alphabetically, in five families of four. Each family assumes the one above it, so working straight down the index is a syllabus.

Foundations
Reinsurance · Cedent · Reinsurer · Retention & Cession
Placement structures
Treaty · Facultative · Retrocession · Reinsurance Tower
Proportional covers
Quota Share · Surplus Share · Ceding Commission · Profit Commission
Non-proportional covers
Excess of Loss · Attachment Point & Limit · Catastrophe XoL · Aggregate Stop Loss
Economics & claims
Reinstatement · Ultimate Net Loss · Rate on Line & Payback · IBNR

How the numbers are made

Figures are deliberately round — $10M retentions, 30% commissions, four-layer towers — because the point is the mechanism, not the arithmetic. Every calculation in every scenario and word problem was checked programmatically before publication, so if a total does not add up, that is a bug and we would like to hear about it.

Read this before you quote anything

The figures are illustrative. They are not market rates, not a quotation, and not evidence of what any layer should cost. Real wordings vary enormously — hours clauses, ALAE treatment, indexation and reinstatement provisions are all negotiated, and the version in your treaty beats the version described here every time.

What it is not

Where it goes next

The twenty terms are the spine. The obvious extensions are a second tier of terms — clash covers, sidecars, cat bonds, commutation, fronting, collateral and cut-through — plus a mode that gives you a randomised set of word problems across the whole map rather than one term at a time.

If you use this for training and want something specific added, say so.