Losses-occurring: the treaty responds to losses that occur during the treaty period. This is the more common default overall, particularly for property catastrophe and most short-tail non-proportional business, because it's administratively simple and produces a self-contained accident year (AY) triangle.
Risks-attaching: the treaty responds to all losses from policies that incept or renew during the treaty period. This basis can be seen in some proportional treaties, since the reinsurer is essentially taking a share of the cedant's book as it is written. Attaching to the underwriting year (UWY) keeps a full year of business together under one set of treaty terms and rates.
Claims-made: the treaty responds to claims made (or reported) during the treaty period. This basis is used mainly to match underlying business that is itself claims-made, such as professional indemnity, medical malpractice or cyber lines.
Lees dit artikel verder onder Download.