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Medical & Health Reinsurance

Sharing the burden of large medical claims so insurers can offer broader health coverage while managing volatility.

A&H

Medical portfolios face severity volatility from large individual claims and frequency shocks. Specific and aggregate excess of loss (stop-loss) protect the insurer's result.

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.

Specific XoL

Per-claimant excess of loss above a chosen deductible.

Aggregate Stop-Loss

Caps the total annual loss ratio of the portfolio.

Quota Share

Proportional support for new or growing health books.

Risk

Key risks & considerations

What we focus on when we underwrite this line.

Large single-claim severity and medical trend.
Frequency shocks, epidemics and utilization spikes.
Provider pricing and claims leakage.

Our appetite

Health books with data on the large-claim distribution and trend, and sound claims controls.

Technical note

Specific XoL caps per-claimant severity; aggregate stop-loss caps the annual loss ratio, both priced on trended, developed data.

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 Medical & Health 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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