Insurance and tail risk
Loss layers above a deductible
Expected excess
$0
Illustrative loss distribution with a deductible threshold
Losses above the selected deductible are emphasized, and the highlighted sample loss shows its excess payment.
Illustrative scenario distribution, not actuarial pricing data.
Deductible
$50
Sample loss
$100
Payment on sample loss
$50
Share of scenarios above deductible
0%