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Reinsurance slip

The placing document summarizing a treaty's terms, which each reinsurer signs by writing its share on it.

Definition

The slip is the document on which a reinsurance placement is concluded: it summarizes the risk, the structure, the period, the premium and the principal clauses, and each reinsurer writes on it the share it accepts and then authenticates it. It runs to a few pages where the wording runs to dozens, and that is exactly what makes it the instrument of the subscription market: a broker walks one document round the underwriters, each seeing what the previous ones have taken. The problem it solves is assembling a panel quickly: gathering twenty reinsurers on a complete contract would take months, while a slip lets a placement close in days. Its brevity is also its weakness, since it leaves out everything that will decide a dispute, hence the contract certainty requirement that the full wording now be agreed before inception rather than months after the slip is signed.

Example

The placement of a 60 million euro catastrophe layer in 2026 closes in eleven days on a four-page slip, with fourteen reinsurers. The leader takes 15 percent and sets the price; the thirteen followers align, with shares from 2 to 12 percent. The full thirty-eight page wording is signed by all fourteen parties nineteen days before inception, in line with the cedant's contract certainty policy.

Related terms
Also known as

Slip, Placing slip, Note de placement, Fiche de placement