IMPLICATIONS FOR REINSURANCE

Professional Liability has become the products liability exposure of the Service Industry. 

In contrast to general insurance lines which lend themselves to a commoditized approach because product performance is perceived to be uniform, for Professional Liability, skill continues to outperform size alone.

Reinsurance structure is a matter of individual choice and it is essential that carriers can buy what they require rather than what is easier for brokers to procure. Myths are perpetuated that only certain structures are available. This is a reflection of the messenger not the market.

Many reinsurance products originally designed for general Property or Casualty business can be inadequate for writers of Professional Liability business. For example, the exposure to systemic loss requires sophisticated Catastrophe protection specifically designed for Professional Liability writers to deal with the emerging threat of inter related claims or an industry wide probe impacting  their portfolio of risks.

Effective reinsurance in terms of performance and resilience through crises, maintenance of capacity, and continued ability of the client to operate without capricious interference, must contribute to the success of a carrier to outperform its peers and deliver its central mission.

Developments in Specialty Reinsurance: Professional Liability Exposures

Developments in Specialty Reinsurance: Casualty Catastrophe Reinsurance