What is meant by “Insurers Proportion Only” at the top of the Annual Aggregate Report?
This is referring to an insurer’s gross proportion of the risk where co-insurance is involved. The insurer should only report their share of the risk. For example, if an insurer has a 35% share of a $100m risk, they should report $35m as their exposure. The reported figure should not be reduced by any facultative or treaty reinsurance because that reinsurance will not reduce the insurer’s terrorism exposure. Similarly, the Number of Risks should indicate the aggregate of the insurer’s share of each risk. If you insurer 10% of 2 risks in one postcode, the Number of Risks for that postcode would be 0.2.
