How XoL Reinsurance with Milli Re Keeps Claims Strong in North Cyprus — by Kerem Can

When markets get stormy, structure decides outcomes. At Can Sigorta, we protect customers by pairing Excess of Loss (XoL) reinsurance with experienced partners like Milli Reasürans. In an XoL program, the insurer retains a set priority (retention) and reinsurers step in above that threshold up to a limit. It’s a non-proportional design focused on severity, not every small claim. For our clients in North Cyprus—locals and expats—this translates into steadier claims handling and fewer balance-sheet shocks, so we can keep promises even in tough years. Below, I’ll explain XoL in plain English, where it beats quota share, and why a regional reinsurer like Milli Re is a smart fit for our risk profile.

What is Excess of Loss (XoL) Reinsurance?

Short version: We keep losses up to a defined retention; reinsurers cover the excess above it, up to their layer limit.
Why it exists: To cap tail risk and stop a few large losses from derailing stability.
Who benefits: Policyholders do—because the company stays resilient and pays fairly + on time even in bad years.

Mini-example:

• Retention (our priority): €250,000 per loss

• First XoL layer: €750,000 in excess of €250,000 (i.e., covers €250k–€1m)

• Result: A €900k loss doesn’t overwhelm the insurer; we absorb €250k, reinsurers respond to the rest under treaty terms.

XoL vs. Quota Share: Different Tools, Different Jobs

• Quota Share (Proportional): Reinsurer takes a fixed % of every premium and every claim. Great for smoothing earnings and supporting growth.

• XoL (Non-Proportional): Reinsurer pays only above the retention. Great for capital protection and cat/severity control.

Many healthy programs blend both: quota share for steady growth + XoL for tail-risk control.

Who is Milli Reasürans (Milli Re)?

Milli Reasürans T.A.Ş. is Turkey’s long-established reinsurer headquartered in Istanbul. For a North Cyprus insurer, pairing with a regional reinsurer brings practical advantages: proximity, language, legal familiarity, and an underwriting culture aligned with local risk realities. In treaty negotiations, wording alignment and claims cooperation are faster when partners share the same playbook.

Why We Pair XoL Structure with Milli Re

1. Tail-risk control: XoL caps shock losses so we can keep servicing claims smoothly.

2. Regional expertise: Milli Re’s decades in the Turkish market help with wording, pricing, and claims protocols that fit our geography.

3. Customer impact: Stronger reinsurance = more predictable claims and fewer surprises for families and businesses.

Lines of Business Under This Protection

• Car Insurance (Comprehensive/Third Party)

• Home Insurance: buildings, contents, burglary, water, earthquake options

• Commercial Risks: stock, fixtures/machinery/transformers, and business interruption

• Travel Insurance: Schengen-compliant options for visas and global trips

• Expat Solutions: remote onboarding, English documents, online renewals

YES WE CAN Tip: Living abroad? You can insure your North Cyprus home fully online—forms, photos, payment, and policy delivery.

Customer Journey (Fast & Simple)

1. Tell us your need (WhatsApp/phone/online form)

2. Share photos/details securely

3. Get your quote (often same day; home insurance frequently within 12 hours)

4. Pay by card securely

5. Receive your policy digitally

FAQs: XoL & Milli Re

Q1. Is XoL only for catastrophes?
No. It’s for any portfolio where severity matters—large per-risk or cat events.

Q2. Does XoL slow claims down?
With clear treaty wordings and cooperation processes, XoL supports timely, consistent decisions.

Q3. Why Milli Re specifically?
Regional experience, underwriting depth, and operational fluency for our market—useful in both pricing and claims.

Q4. Which is better—quota share or XoL?
Neither “wins” universally. They solve different problems; mature programs often use both.