Clash Reinsurance

Whilst quota share and risk excess reinsurances respond to individual losses from a single policyholder there is always the risk that a loss ratio may be impacted by an accumulation of losses as a result of a single event involving multiple policyholders.

Clash reinsurance provides protection for such an eventuality and can also cover runaway costs as well as excess of policy limit and extra contractual obligation awards Clash reinsurance always has a finite recovery amount and the emphasis is on the Risk Retention Group and its advisors to ensure that sufficient coverage is purchased for any accumulations of risk after the impact of any quota share or risk excess reinsurance.

Clash reinsurance is normally secured on a losses occurring basis which protects losses happening during the underwriting year, regardless of when the original policies incepted.