Pricing in General Insurance

51The Policy Structure

This type of basis is specic to reinsurance, as the policy period depends on the policy

period of the underlying direct policies rather than on the timings (occurrence date, report-

ing date, etc.) of the loss itself.

3.3.1.3 Claims Made

All losses (to the relevant layer) reported during the (reinsurance) policy period will be

recovered, regardless of the occurrence date and the policy inception date. As an exam-

ple, if the reinsurance policy covers the period 1 July 2014 to 30 June 2015, a loss which

becomes known to the reinsured on 11 January 2015 and is reported within the permitted

time frame, will be covered even if the incident occurred 5 years earlier and the original

policy incepted in 2009. Note that some con ...