Personal Accident Reinsurance

Personal accident portfolios are exposed to accumulation events, transport disasters, workplace incidents or venue events, where many insured lives are affected simultaneously. Catastrophe excess of loss is the primary tool, most often written on a treaty basis by defined class.

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.

• Catastrophic accumulation, transport, workplace or venue events affecting many lives at once.
• Definition & scope, what counts as an accident, disappearance and exposure clauses.
• Concentration by site or conveyance, passenger lists, single premises.

1. The per-event accumulation model

Personal accident claims are driven by events that affect several insured lives at once. Two random elements matter: how many events occur in a year (frequency \(N\sim\mathrm{Poisson}(\lambda)\)) and how many insured lives K each event affects, each with sum assured SA. The loss from one event aggregates those sums.

2. Maximum event loss and accumulation control

The single largest credible accumulation, one conveyance, one building, one venue, defines the maximum event loss (MEL or PML) and drives the catastrophe cover.

3. Pricing the catastrophe XoL

The catastrophe layer \(\ell\text{ xs }d\) is priced from the expected annual loss to the layer: pure premium equals event frequency times the expected recovery to the layer.

4. Clash and concentration across lines

A single event can trigger personal accident, group life and medical covers at once. Power Re controls this with per-event limits, clash cover and monitoring of concentration by conveyance, site and event.