Why it is used
It can protect frequency deterioration or an unusually adverse annual result.
Reinsurance Intelligence · Non-proportional treaty
All conceptsAggregate Covers
Aggregate protection responds when covered losses accumulate beyond a threshold across a period.
Illustrative example
A stop-loss treaty may respond when the cedant's covered loss ratio exceeds the agreed attachment point.
Programme questions
- Annual aggregate deductible
- Loss-ratio basis
- Limits, exclusions and reporting
Educational overview only. Reinsurance effect depends on the complete contract, programme structure, accounting basis, law, facts, and counterparties. The original insurer normally remains responsible to its policyholder.