Okuzeka
Insurance vocabulary · Reinsurance

Treaty reinsurance

Meaning in insurance, with examples

nounAdvanced term

In insurance, treaty reinsurance means: A reinsurance agreement that automatically covers a whole group of an insurer's policies, such as all its property business, for a set period.

In Turkish: anlaşmalı reasürans, treaty reasürans

How it is used

The main way insurers buy reinsurance. Treaties are negotiated, placed and renewed every year, often on 1 January. They can be proportional, such as quota share, or non-proportional, such as excess of loss.

Example sentences

  1. Under our treaty reinsurance, every new fire policy is covered automatically.

  2. The treaty reinsurance renewal was difficult this year because of last year's flood losses.

Common collocations

  • treaty reinsurance programme
  • treaty renewal
  • proportional treaty
  • non-proportional treaty
  • reinsuranceInsurance bought by insurance companies to pass part of their risks to another company, so that very large or numerous losses do not threaten them.
  • facultative reinsuranceReinsurance arranged separately for one specific risk, such as a large factory, where the reinsurer can accept or decline each case.
  • quota shareA proportional reinsurance arrangement in which the insurer and reinsurer share the premiums and claims of every policy in a fixed percentage.
  • excess of lossA type of reinsurance in which the reinsurer pays the part of a loss above an agreed amount, up to an upper limit.

More terms: Reinsurance

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This page explains English vocabulary for learners. It is not financial advice.