Okuzeka
Insurance vocabulary · Reinsurance

Excess of loss

Meaning in insurance, with examples

nounAdvanced term

In insurance, excess of loss means: A type of reinsurance in which the reinsurer pays the part of a loss above an agreed amount, up to an upper limit.

In Turkish: hasar fazlası, hasar fazlası reasüransı

How it is used

The main non-proportional form, written XL or XoL. Brokers describe it in layers: '40 million xs 10 million' means 40 million of cover above a 10 million retention. Catastrophe programmes are usually excess of loss.

Example sentences

  1. Our excess of loss treaty pays losses above 20 million lira per event.

  2. The catastrophe cover is arranged in three layers of excess of loss.

Common collocations

  • excess of loss treaty
  • catastrophe excess of loss
  • excess of loss layer
  • per-risk excess of loss
  • retentionThe part of a risk or loss that an insurer keeps for its own account instead of passing it to reinsurers.
  • quota shareA proportional reinsurance arrangement in which the insurer and reinsurer share the premiums and claims of every policy in a fixed percentage.
  • treaty reinsuranceA reinsurance agreement that automatically covers a whole group of an insurer's policies, such as all its property business, for a set period.
  • reinsuranceInsurance bought by insurance companies to pass part of their risks to another company, so that very large or numerous losses do not threaten them.

More terms: Reinsurance

Practise with graded reading

Reading at the right level is the fastest way to make new words stick. Pick free English books by level:

This page explains English vocabulary for learners. It is not financial advice.