excess-of-loss reinsurance

Property aggregate excess-of-loss (XoL) capacity has rebounded strongly driven by a 50% increase in traded limits, according to reinsurance broker Marsh Re, revealing that nearly 40% of buyers now integrate frequency protection into their XoL strategies, up from just over a quarter two years ago.

The current reinsurance market pricing environment, with declining rates seen on many property catastrophe lines particularly in peak zones, is likely to affect those reinsurers which are more involved in underwriting excess-of-loss, or non-proportional reinsurance contracts, said Standard & Poor’s.