Hi All, Why is XOL reinsurance coverage is based on accident year and not on underwriting year? Regards Salman
Im not sure if that is entirely correct, can you share where you found that statement? what i know is that XL can be on a Losses Occurring During (LOD), Risk Attaching During (RAD) or Claims Made basis. The LOD basis is quite similar to an accident year basis since the policy would cover all claims that would have occured during the reinsurance policy period. the RAD basis is similar to underwriting year since it covers policies written (and therefore attaching to the reinsurance policy) during a specified period. Claims made coverage is a different animal altogether and not easily comparable to accident/underwrting years.
