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Disability Reinsurance

Income-protection reinsurance guaranteeing financial support for policyholders who become unable to work.

A&H

Disability income exposes insurers to claim-duration and incidence risk. Reinsurance shares severity and stabilizes reserves over long claim tails.

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.

Per-life XoL

Excess of loss on long-duration disability claims.

Reserve stability

Smoothing long-tail claim development.

Quota Share

Proportional capacity for growing portfolios.

Risk

Key risks & considerations

What we focus on when we underwrite this line.

Claim inception and, critically, claim duration and termination.
Economic sensitivity, claims rise in downturns.
Long-tail reserve development.

Our appetite

Income-protection books with credible incidence and termination experience.

Technical note

Per-life XoL protects long-duration claims; reserving discipline (chain-ladder and Bornhuetter-Ferguson) is central to adequacy.

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 Disability 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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