Sutton Reinsurance Products

$5M per person

$10M per occurrence











Abnormal Mortality Stoploss Reinsurance

Abnormal Mortality Stoploss (AMSL) protects life insurance portfolios against unusual or unexpected mortality results. The AMSL product from Sutton Reinsurance is designed as cost-effective protection against the effects of an epidemic/pandemic on a life insurer’s portfolio and can also serve as a catastrophe protection.


Product need and use:

AMSL Reinsurance protects a company against having greater than expected mortality claims in the aggregate in a given calendar year.

An insurer considering AMSL coverage may, or may not, have Catastrophe Reinsurance (CAT) coverage. If a company has CAT, then catastrophe occurrences should be excluded from the AMSL coverage as it is assumed that the catastrophe coverage will respond to these events. This can be accomplished by excluding losses that involve three or more lives from the AMSL coverage.

If an insurer does not have a catastrophe cover, the AMSL coverage will respond to catastrophe events by pushing the aggregate claims excess of the AMSL coverage attachment point. The effective catastrophe limit is then equal to the limit of the AMSL coverage. The Reinsured should be aware that there is only one limit provided by the AMSL coverage. Therefore, if there is a catastrophe occurrence that causes a total loss under the AMSL coverage, there is no reinstatement of coverage. Typically, catastrophe coverage will provide one reinstatement and thus provides the reinsurer a full coverage limit for two separate events.

Additionally Life Insurers are exposed to the risk of pandemic/epidemic adversely impacting their mortality experience. The AMSL coverage will protect life insurers against this risk.


AMSL Subject Insurance:

The AMSL subject insurance can include all lines of life insurance, such as individual, group and credit life. Note: only policies causing death due to sickness are covered. Sutton Reinsurance does not offer AMSL coverage on disability, or medical products.


AMSL Reinsurance Design/Options:

Typically, a company will buy a protection attaching at 120% of expected claims. AMSL reinsurance coverage above the attachment will depend on the needs and budget of the reinsured, however a small- to mid-sized company expecting claims of $20M may want to consider an additional 25% or $5M excess of the attachment. The Reinsurer will normally require a 10% co-insurance within the layer of reinsurance coverage. Therefore, typical AMSL coverage for a small company may be 90% of 25% excess of 120% of expected claims, or if expected claims are $20M then 90% of $5M excess of $24M.


Information Requirements:

Information requirements are outlined in AMSL questionnaire from Sutton Reinsurance.