Bharti AXA INSURANCE GLOSSARY Aggregate Excess of Loss Reinsurance Aggregate excess of loss reinsurance, also known as aggregate stop-loss reinsurance, stipulates that the reinsurer would cover the losses for a primary insurer if the losses exceed a stated retention level. This type of reinsurance caps the total losses for which a primary insurer will be held responsible. This cap is called “attachment point”, and once this point is reached the reinsurer solely participates in the losses. Typically, aggregate excess of loss reinsurance is in effect for a year and a single policy would cover a single line of business for the primary insurer. Aggregate excess of loss reinsurance is considered a risky proposition for the reinsurers. This is because if there is a sharp uptick in the claims – for example, because of a natural calamity – for the reinsured, the reinsurer will have to potentially cover a large loss. Therefore, the premiums for such reinsurance are high. Some reinsurers may also require the primary insurer to co-pay the losses, and will only cover 90%-95% of the excess losses. Request Call Back Category * - Select -CarTwo WheelerHealthTravelPersonal Accident Buy Renew Claim submit Related Posts Disclaimer : The information published on this website is for the public's reference only. Content of this information is to provide an overview of your Travel needs and should not be relied upon for personal, medical, legal or financial decisions and you should consult an appropriate professional for specific advice. Bharti AXA General Insurance Company Limited makes no representations about the suitability, reliability, timeliness, and accuracy of the information, travel, services, or any other items mentioned on this subject for any purpose whatsoever.