Clash Reinsurance

DEFINITION of 'Clash Reinsurance'

A type of reinsurance that provides additional coverage to the insurance company in the event that one casualty loss event results in two or more claims from insured policy holders. Clash reinsurance is purchased by companies for their own security. It reduces the potential maximum loss on either a single risk or a large number of risks.

BREAKING DOWN 'Clash Reinsurance'

Clash reinsurance extends the coverage from normal reinsurance recoveries when the insurance company is faced with two or more claims from multiple insureds following a catastrophic event, such as a hurricane, flood, fire or earthquake.


The clash insurance is intended to protect the insurer when multiple claims arise from out of the ordinary events and allows insurance companies to share large risks with other companies.

RELATED TERMS
  1. Casualty And Theft Losses

    Deductible losses stemming from the loss or destruction of the ...
  2. Casualty Insurance

    A broad category of coverage against loss of property, damage ...
  3. Disaster Loss

    A special type of tax-deductible loss, similar to a casualty ...
  4. Insurance

    A contract (policy) in which an individual or entity receives ...
  5. Reinsurance

    The practice of insurers transferring portions of risk portfolios ...
  6. Aggregate Excess Insurance

    An insurance policy that limits the amount that a policyholder ...
Related Articles
  1. Personal Finance

    Insure Your Future with a Career as an Actuary

    If you've got excellent math skills, they can add up to a lucrative career as an actuary.
  2. Taxes

    Deducting Disaster: Casualty And Theft Losses

    If you've been a victim, your losses may be deductible. Find out how.
  3. Insurance

    Is Insurance Underwriting Right For You?

    If you have excellent analytical skills and an eye for detail, this may be your calling.
  4. Insurance

    Do You Need Casualty Insurance?

    Find out how different types of coverages can protect you and which policy is right for you.
  5. Wealth Management

    Using Insurance in a Business Succession Plan

    How to use life and disability insurance to help fund a business succession or buyout plan.
  6. Real Estate

    Best 3 Mortgage Calculator Websites with PMI

    Learn more about all of the factors behind PMI, and discover the three best websites that provide a mortgage calculator that includes PMI.
  7. Taxes

    Don't Miss These Tax Deductions

    Knowing the tax deductions you're entitled to can make or break your bank account. Do you know about all these insurance-related deductions?
  8. Insurance

    6 Reasons To Avoid Private Mortgage Insurance

    This costly coverage protects your mortgage lender - not you.
  9. Entrepreneurship

    Identifying And Managing Business Risks

    There are a lot of risks associated with running a business, but there are an equal number of ways to prepare for and manage them.
  10. Insurance

    How Does Dental Insurance Work?

    Learn how dental insurance policies work and what to look for when comparing policies so you are not surprised with unexpected bills.
RELATED FAQS
  1. What's the difference between casualty insurance and disability insurance?

    Casualty insurance is often called "property casualty insurance", and it provides insurance protection for your property ... Read Full Answer >>
  2. Do FHA loans have private mortgage insurance (PMI)?

    he When you make a down payment from 3 to 20% of the value of your home and take out a Federal Housing Administration (FHA) ... Read Full Answer >>
  3. Does renters insurance cover storage units?

    An all-perils renters insurance policy provides coverage for the contents of storage units. Most policies limit the amount ... Read Full Answer >>
  4. Does renters insurance cover personal injuries?

    Renters insurance provides two main forms of coverage – liability and contents insurance – and they are offered together ... Read Full Answer >>
  5. Does renters insurance cover flooding?

    An all-perils renters insurance policy does not cover damage from a flood. Consumers sometimes confuse a pipe bursting with ... Read Full Answer >>
  6. Does renters insurance cover mold?

    An all-perils renters insurance policy typically provides a low set amount of coverage for damage caused by mold as long ... Read Full Answer >>
Hot Definitions
  1. Short Selling

    Short selling is the sale of a security that is not owned by the seller, or that the seller has borrowed. Short selling is ...
  2. Harry Potter Stock Index

    A collection of stocks from companies related to the "Harry Potter" series franchise. Created by StockPickr, this index seeks ...
  3. Liquidation Margin

    Liquidation margin refers to the value of all of the equity positions in a margin account. If an investor or trader holds ...
  4. Black Swan

    An event or occurrence that deviates beyond what is normally expected of a situation and that would be extremely difficult ...
  5. Inverted Yield Curve

    An interest rate environment in which long-term debt instruments have a lower yield than short-term debt instruments of the ...
  6. Socially Responsible Investment - SRI

    An investment that is considered socially responsible because of the nature of the business the company conducts. Common ...
Trading Center