treaty reinsurance
- A type of reinsurance encompassed by a broad agreement that instantaneously reinsures risks belonging to a particular category to a fixed limit the moment they're insured by the main insurer
- The insurance company opted for treaty reinsurance to automatically secure risks as they became insured.
- The primary insurer minimizes its risk through treaty reinsurance as the risks are shared once the insurer accepts them.
- With treaty reinsurance, the insurer benefits from automatic coverage when it underwrites certain class of risks.
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