Nonproportional Reinsurance and the Index Clause, [Discussion]

The Society is indebted to Mr. Ferguson for a clear and understandable analytical disclosure of one of the arcane processes which have lead to the remarkable increases in recent excess of loss reinsurance rates. As a reinsurance buyer with no significant reinsurance actuarial experience, I feel enlightened and somewhat reassured that my reinsurance is not a rip-off.