Glossary Definition: Treaty reinsurance is a formal contract between a primary insurance provider and a reinsurer stipulating that the reinsurer must accept all risks within a pre-defined category written by the primary carrier. Utilizing treaty reinsurance allows primary insurers to increase their capital capacity and safely issue high-limit policies overseas, forming a foundational framework within the broader reinsurance definition
and stabilizing the international insurance underwriting process.
Treaty Reinsurance
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