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Critical Illness Reinsurance

Living-benefit reinsurance ensuring policyholders receive resources when diagnosed with a covered critical condition.

A&H

Critical illness combines mortality-like severity with morbidity trend risk. Proportional and per-life excess structures share the claim burden and protect margins.

Power Re approaches this line as a specialist: we assess each risk on its own merits, price it with actuarial rigor, and structure cover that genuinely fits the cedant’s exposure and objectives, never a one-size template.

Structures

How we structure it

The structures we most often deploy for this line, proportional and non-proportional, tailored to your book.

Quota Share

Proportional support with aligned incentives.

Per-life XoL

Excess cover on high-sum-assured lives.

Trend monitoring

Analytics on incidence and definition drift.

Risk

Key risks & considerations

What we focus on when we underwrite this line.

Incidence trend and definition drift as medical advances change diagnosis rates.
Anti-selection at underwriting.
Concentration on high-sum lives.

Our appetite

CI books with clear definitions, sound underwriting and monitored incidence.

Technical note

Proportional support plus per-life XoL on high sums; we track definition changes and incidence trend closely.

Models

Actuarial modeling

The frequency and severity models we use to price this line, and the loss it aggregates to.

Frequency models

PoissonNegative binomial

Severity models

LognormalGammaPareto (large claims)

Compound claims (incidence-driven)

$$E[S]=E[N]\,E[X],\qquad E[N]=\sum_x n_x\,i_x$$

Claim count from incidence rates i_x; severity X models the medical, disability or critical-illness amount.

Illustrative morbidity

Age x	Incidence per 1,000
30	1.5
40	3.0
50	6.5
55	9.0
60	13.0
65	18.0
70	24.0

Illustrative morbidity / incidence rates for accident and health lines.

Discipline

Our underwriting approach

The discipline is the same across every line we write.

Risk selection

We assess each risk on its merits and let marginal business go, growth by quality, not volume.

Pricing discipline

Experience and exposure rating, credibility-weighted, load the price for volatility and cost of capital.

Accumulation control

Clear limits manage concentration by event, geography and cedant across the portfolio.

Claims partnership

Fast, fair and transparent claims handling, the moment our promise is tested.

Why Power Re

Why cede Critical Illness Reinsurance to Power Re

✓
Specialist expertise
Deep technical knowledge of the line and of the Latin American market.
✓
Fast, clear decisions
A timely yes or no, with terms and capacity you can rely on.
✓
Financial strength
13× regulatory solvency coverage and a disciplined retrocession program.
✓
Long-term partnership
We co-design programs and stand with cedants through the cycle.

Let’s build resilient portfolios together

Partner with a reinsurer that combines technical discipline, financial strength and deep regional insight.

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