Catastrophe excess of loss

Catastrophe excess of loss is a form of excess of loss reinsurance where the reinsurer agrees to
reimburse the amount of a very large loss in excess of a particular sum. It protects the insurance
company against an accumulation of losses due to single events such as major natural or human-made
disasters. It was developed after the San Francisco earthquake in 1906 to protect insurers against
exceptional loss. It is a form of excess of loss reinsurance where the reinsurer agrees to reimburse the
amount of a very large loss in excess of a particular sum. Excess of loss cover protection for
accumulation of loss out of a single event.

Per policy excess of loss

A type of excess of loss reinsurance that relates the connection and the reinsurance limit
independently to each insurance policy allotted by the main broker unrelatedly of the magnitude of
losses happening under each policy. It is used mainly with liability insurance.