Description: Excess Reinsurance is a coverage purchased by insurance carriers to limit loss in a year from any one claim. This article addresses the issues when purchasing medical excess reinsurance on a medical portfolio. The most important consideration in the reinsurance purchasing decision is determining the risk objectives of the organization. The proper risk analysis by the carrier or in conjunction with its reinsurer will address the following questions: What is predictable risk versus unpredictable risk?

Description: Specific and aggregate stop loss insurance reinsurance is a product that has unique characteristics. The product is a special type of policy that covers employers or their self-funded employee benefit plans for larger health claims. The product has some unique reserving challenges for the health/reinsurance actuary.