Why it is used
It preserves protection for later events while pricing repeated use of the layer.
Reinsurance Intelligence · Limit management
All conceptsReinstatements
A reinstatement restores all or part of an exhausted excess-of-loss limit after a covered loss, often for additional premium.
Illustrative example
After a cyclone uses 60% of a Cat XL layer, a reinstatement can restore capacity for a second event.
Programme questions
- Number and percentage
- Free or paid reinstatement premium
- Pro-rata as to amount and/or time
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.