Actuarial Outpost
Go Back   Actuarial Outpost > Actuarial Discussion Forum > Property - Casualty / General Insurance
FlashChat Actuarial Discussion Preliminary Exams CAS/SOA Exams Cyberchat Around the World Suggestions

Thread Tools Search this Thread Display Modes
Old 11-05-2018, 02:28 PM
jerrytuttle jerrytuttle is offline
Join Date: Oct 2001
Posts: 273
Default Wildfire reinsurance

Quick question: How are wildfires generally reinsured? Is a property cat treaty generally named peril?
Reply With Quote
Old 11-05-2018, 02:31 PM
DeepPurple's Avatar
DeepPurple DeepPurple is offline
Join Date: Jun 2004
Posts: 4,274

Originally Posted by jerrytuttle View Post
Quick question: How are wildfires generally reinsured? Is a property cat treaty generally named peril?
Wildfires get PCS numbers Jerry. Most cat treaties apply on a per occurrence basis. I cannot speak to all cat treaties but they generally are NOT named perils and loosely refer to something like "Disaster, accident, losses, or event"

On the other hand, since many fires are traced back to utility companies, those utility companies' liability policies may come into play. Think about the potential umbrella liability.

Furthermore, the Cal Insurance Commissioner proactively mandated that mudslide losses (that otherwise might have been excluded) were a consequence of wildfires (proximate cause) and therefore covered by policies {re}insuring fire.
Here's a link to CAL Dept of Insur memo:

- Your Fan DeepPurple
Come on. Let's go space truckin'. Come on!

Last edited by DeepPurple; 11-05-2018 at 02:47 PM..
Reply With Quote
Old 11-06-2018, 12:59 PM
r8ingStuff r8ingStuff is offline
Join Date: Apr 2016
Location: Philadelphia
Studying for Nothin'
Favorite beer: Urban Village Brewery
Posts: 16

I agree with the above, and will also add...

Although most reinsurance agreements are not named peril, you might find some wording in the "Occurrence" article specific to wildfires. Specifically, some reinsurers will include an "hours clause" that limits the amount of time that one wildfire can be considered one occurrence (ex. 36 hours), until it is broken into two occurrences (subject to another retention / reinstatement premium).

Disclosure - I've been away from property cat reinsurance for a few years, but I don't suspect this has changed too much.
Reply With Quote

Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off

All times are GMT -4. The time now is 09:09 PM.

Powered by vBulletin®
Copyright ©2000 - 2019, Jelsoft Enterprises Ltd.
*PLEASE NOTE: Posts are not checked for accuracy, and do not
represent the views of the Actuarial Outpost or its sponsors.
Page generated in 0.28307 seconds with 9 queries