Glossary

D

Decennial insurance

Decennial insurance provides cover to building owners and construction companies against losses caused by structural defects in new buildings resulting from inherent defects in design, construction or the materials employed.  In a number of countries, including France, such coverage is required as a matter of law. It is generally granted for a period of ten years after construction is completed.

Deposit

Amount deposited with the ceding company to guarantee the reinsurer's liabilities. Cash deposits generally earn interest at a rate agreed at the time of writing the business.  Income from securities deposited accrues to the reinsurer.

Direct insurance

A policy written with an insurer by an individual or a company to cover a risk (property, service or person). This policy can either be underwritten directly with one of the insurer's agents or via a broker who receives a commission.