Specific Excess Reinsurance

Updated: 11 March 2024

What Does Specific Excess Reinsurance Mean?

Specific excess reinsurance (also called excess of loss insurance) is coverage that the reinsurer is responsible for covering in the event that the amount of a claim exceeds the limit imposed by the insurer (the ceding company). Depending on the agreement, the ceding company may also share the excess with the reinsurer.

Insuranceopedia Explains Specific Excess Reinsurance

Specific excess reinsurance passes the financial burden on to the reinsurer once the amount of money involved in the coverage for a loss has surpassed the limit set by the ceding company.

If the limit is set at $100,000 and the claim is $110,000, the reinsurer will pay the excess $10,000. But the ceding company may also have to share in the payment of the excess if this has been stipulated in their agreement.

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