Risk Attaching Reinsurance Solutions

Manage Risks Effectively with Timely Coverage

Risk Attaching Reinsurance Service

Risk Attaching Reinsurance is a specialized form of reinsurance in which the reinsurer provides coverage for all insurance policies that are in effect during the term of the reinsurance agreement, regardless of when the underlying policies were originally issued. This means that the reinsurer is responsible for any claims that arise from these policies, offering comprehensive protection for the insurer against potential losses.

This type of reinsurance is particularly advantageous for insurers who want to consistently manage their risk exposure over a specified period. It provides a clear and certain level of coverage, allowing insurers to transfer the risk associated with all policies in force during the reinsurance term. By doing so, insurers can stabilize their financial planning and improve their ability to efficiently handle and respond to claims. This can ultimately lead to a more secure and stable financial position for the insurer.

What is Risk Attaching Reinsurance?

Risk Attaching Reinsurance is a specialized type of reinsurance agreement in which the reinsurer agrees to provide coverage for all risks associated with insurance policies issued or renewed during the term of the reinsurance contract. This means that any insurance policies that become effective during the reinsurance period will be protected, and the reinsurer will bear responsibility for any losses resulting from these policies, even if the losses occur after the reinsurance agreement has ended, as long as the policies were in effect during the contract period.

Key Features

Coverage for Policies as Issued or Renewed

The reinsurer provides coverage for risks as they are attached to the insurer’s policies. Whether they are newly issued or renewed during the reinsurance contract period the reinsurer provides coverage as determined by the agreement of terms.

Continuous Protection

The reinsurer pays for losses that occur on these policies, even if the losses happen after the reinsurance contract has ended. This protects the insurer from bearing losses. The protection is valid as long as the policies were in force during the contract period.

Contract Period

The coverage is linked to the term of the reinsurance contract, ensuring that all policies in effect during this period are covered by the reinsurer.

When to Use

Risk Attaching Reinsurance is particularly advantageous in the following scenarios:

Managing Policy Longevity

For insurers with long-term policies or those with policies that frequently renew, this type of reinsurance ensures continuous coverage for all policies in force during the contract term.

Complex Risk Portfolios

Insurers with complex or diverse risk portfolios can benefit from the certainty that all risks attached during the contract period are reinsured, simplifying risk management.

Predictable Financial Planning

This reinsurance structure helps insurers predict and stabilize their financial planning, knowing that any losses from policies in force during the contract period will be covered.

Regulatory Compliance

Ensuring compliance with regulatory requirements that mandate continuous coverage for policyholders, particularly in jurisdictions with strict insurance regulations.

Seasonal Insurance Products

Ideal for insurers offering seasonal or event-based insurance products, as it guarantees coverage for all policies issued during the relevant period, regardless of when claims are made.

Risk Attaching Reinsurance is a valuable tool for insurers seeking comprehensive and continuous coverage for all policies in force during a specified period, offering financial stability and enhanced risk management capabilities.

Benefits of Risk Attaching Reinsurance

Timely Coverage

  1. Immediate Coverage:

   – Prompt Protection: Risk Attaching Reinsurance offers immediate coverage as soon as risks are issued or renewed, ensuring there is no gap in protection for new or renewed policies.

   – Seamless Integration: This ensures that all policies coming into force during the reinsurance contract period are covered without delay, providing seamless integration into the insurer’s risk management strategy for the company.

Financial Protection

  1. Protection Against Unexpected Losses:

   – Comprehensive Safeguard: This type of reinsurance protects insurers against unexpected large losses that may occur during the contract period, ensuring that financial stability is maintained.

   – Loss Mitigation: By transferring the risk of significant claims to the reinsurer, the insurer is shielded from potential financial strain that could arise from unforeseen events.

Risk Management

  1. Effective Risk Management:

   – Stability and Predictability: Risk Attaching Reinsurance helps insurers manage risks more effectively by providing predictable and stable coverage. This allows insurers to better plan and allocate resources.

   – Enhanced Solvency: By limiting exposure to large losses, it supports the insurer’s solvency and compliance with regulatory requirements, enhancing overall financial health.

   – Strategic Planning: It enables insurers to focus on their core business operations and strategic growth initiatives, knowing that their risk exposure is well-managed and backed by reliable reinsurance.

Overall, Risk Attaching Reinsurance offers immediate, comprehensive coverage, shields against unexpected financial losses, and enhances the insurer’s ability to manage risks effectively, ensuring long-term stability and success.

How Risk Attaching Reinsurance Works

Process Overview

Assessment and Agreement

  • The insurer evaluates its portfolio and determines the need for Risk Attaching Reinsurance.
  • The insurer negotiates and enters into a reinsurance agreement with a reinsurer. This contract specifies the period of coverage, the types of policies covered, and the terms and conditions.

Issuance and Renewal of Policies

  • During the reinsurance contract period, as the insurer issues or renews policies, these policies are automatically covered under the Risk Attaching Reinsurance agreement.
  • This coverage applies to all new and renewed policies without any delay.

Risk Transfer

  • The insurer retains the primary responsibility for the policies but transfers the risk exceeding its retention limit to the reinsurer.
  • If a claim arises on any of the covered policies, the insurer pays the initial losses up to the retention limit, and the reinsurer covers the excess amount.

Claims Handling

  • In the event of a claim, the insurer processes and pays the claim up to its retention limit.
  • For losses exceeding the retention limit, the insurer submits the claim to the reinsurer for reimbursement.

Contract Expiry

  • At the end of the reinsurance contract period, the agreement covers all policies issued or renewed during that time, even if claims arise after the contract has expired.

Example Scenario

Scenario: Insurer Purchasing Risk Attaching Reinsurance for Liability Insurance

  1. Assessment and Agreement: An insurance company (Insurer B) offering liability insurance evaluates its risk exposure and decides to purchase Risk Attaching Reinsurance. Insurer B negotiates a reinsurance contract with Reinsurer X for a period from January 1, 2024, to December 31, 2024. The agreement includes a retention limit of ₹10,00,000 and covers all liability policies issued or renewed during this period.
  2. Issuance and Renewal of Policies: Throughout 2024, Insurer B issues and renews liability policies. Each of these policies is automatically covered by the Risk Attaching Reinsurance agreement.
  3. Risk Transfer: A new liability policy is issued on June 1, 2024, with a policy limit of ₹50,00,000. This policy is covered by the reinsurance agreement.
  4. Claims Handling:

   – On September 15, 2024, a claim is made on the policy issued on June 1, 2024, with a total loss amounting to ₹30,00,000.

   – Insurer B pays the first ₹10,00,000 (retention limit) of the claim.

   – Insurer B then submits a claim to Reinsurer X for the remaining ₹20,00,000, which Reinsurer X reimburses.

  1. Contract Expiry:

   – The reinsurance contract expires on December 31, 2024. However, a policy issued on December 1, 2024, is still covered for any claims that might arise in 2025 because it was issued within the reinsurance contract period.


Reinsurance Agreement

Detailed contract outlining the terms, period of coverage, retention limit, types of policies covered, and responsibilities of both parties.

Policy Records

Documentation of all policies issued or renewed during the reinsurance contract period, including policy terms, coverage limits, and dates of issuance or renewal.

Claims Records

A comprehensive record of all claims made on the covered policies, including details of the claim amount, date, and how it was processed are added in the claim records.

Financial Statements

Records of payments made by the insurer and reimbursements received from the reinsurer are crucial to maintain business and are detailed out in the financial statements.

Risk Assessment Reports

Analysis of the insurer’s portfolio and risk exposure that justified the need for Risk Attaching Reinsurance are included in the risk assessment reports.

Communication Logs

Correspondence between the insurer and reinsurer regarding the agreement, claims handling, and any adjustments to the reinsurance terms are all logged in the communication logs between to two companys to maintain clear communication.

By following these steps and ensuring thorough documentation, insurers can effectively manage their risk exposure through Risk Attaching Reinsurance, providing financial protection and stability.

Why Choose LNG Insurance for Risk Attaching Reinsurance?


LNG Insurance has a wealth of expertise in the Risk Attaching Reinsurance sector, and we have developed a strong portfolio over the years. Our team is made up of experienced professionals who possess extensive industry knowledge and technical skills, enabling us to offer high-quality reinsurance solutions. With a thorough grasp of market dynamics and regulatory frameworks, we are adept at efficiently managing intricate challenges and offering our clients dependable protection.

Client Success Stories

Case Study 1: Global Manufacturing Firm

A leading global manufacturing firm approached LNG Insurance to manage its reinsurance needs. The company faced significant risks due to its vast operational scale and international presence. LNG Insurance developed a bespoke reinsurance program that addressed the firm’s specific exposures, resulting in a 30% reduction in potential loss and enhanced financial stability.

Case Study 2: Major Healthcare Provider

A major healthcare provider required a sophisticated risk management solution to cover its diverse range of services. LNG Insurance crafted a tailored reinsurance strategy that not only safeguarded the provider against unforeseen events but also optimized their risk retention. This led to improved risk management and a notable decrease in reinsurance costs.

Tailored Solutions

LNG Insurance is dedicated to understanding the individual and diverse needs of each client and meeting them with effective reinsurance solutions. Our service offering is centered on providing customized reinsurance programs that are tailored to address the specific challenges of our clients. Through close engagement with our clients, we thoroughly grasp their unique requirements and design reinsurance programs that align with their risk profiles and business goals. Whether it involves developing new insurance products or refining existing ones, LNG Insurance ensures that our solutions are as dynamic and adaptable as the diverse risks our clients face. 

In the Risk Attaching Reinsurance market, LNG Insurance stands out due to our unmatched expertise, demonstrated track record of client success, and unwavering commitment to delivering personalized solutions. Choose LNG Insurance for comprehensive reinsurance coverage that is specifically crafted to address your individual needs and safeguard your business against potential risks.

Frequently Asked Questions (FAQs)

Here are some frequently asked questions about Risk Attaching Reinsurance that can help you answer your queries better

1. What is Risk Attaching Reinsurance?

Risk Attaching Reinsurance is a type of reinsurance coverage where the reinsurer is responsible for all claims arising from policies written during the term of the reinsurance contract, regardless of when the claims are actually reported or paid. This means that even if a claim is made after the reinsurance contract has expired, the reinsurer will still cover it as long as the underlying policy was issued during the contract period.

2. How does Risk Attaching Reinsurance differ from other types of reinsurance?

Risk Attaching Reinsurance differs from other types of reinsurance, such as Losses Occurring Reinsurance, in its coverage trigger. While Risk Attaching Reinsurance covers claims from policies written during the reinsurance period, Losses Occurring Reinsurance covers all claims occurring within the reinsurance period, regardless of when the policies were written. This distinction impacts how and when claims are covered and can influence an insurer’s risk management strategy.

3. What are the benefits of Risk Attaching Reinsurance?

– Predictable Coverage: Provides clarity on which policies are covered, reducing uncertainty.

– Enhanced Risk Management: Helps insurers manage long-tail risks by ensuring coverage for claims reported after the reinsurance contract period.

– Financial Stability: Offers protection against significant losses, contributing to the insurer’s financial stability.

– Customizable: Can be tailored to fit the specific risk profile and needs of the insurer.

4. How do I know if Risk Attaching Reinsurance is right for my business?

Determining if Risk Attaching Reinsurance is suitable for your business involves assessing your risk profile, business model, and financial goals. Consider factors such as:

– Type of Risks: If your business writes long-tail policies where claims may be reported years after issuance, this type of reinsurance may be beneficial.

– Risk Tolerance: Evaluate your company’s risk tolerance and financial stability. Risk Attaching Reinsurance can provide an added layer of security.

– Coverage Needs: Assess whether you need coverage that extends beyond the reinsurance contract period.

– Consultation with Experts: Consulting with reinsurance experts, like those at LNG Insurance, can provide valuable insights and help tailor a solution to your specific needs.

LNG Insurance offers personalized consultations to help you determine the best reinsurance strategy for your business. Reach out to our team to explore how Risk Attaching Reinsurance can support your risk management objectives.

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