Introduction to Reinsurance II - Treaty (SearchBite) - Searchlight Insurance Training

Introduction to Reinsurance II – Treaty (SearchBite)

This intensive 2 hour SearchBite introduces Treaty reinsurances, it looks at what they are, how they operate and their uses, together with some pros and cons.

The SearchBite would be useful for those who are beginning their insurance and reinsurance studies. A basic understanding of insurance and facultative reinsurance would be desirable.

It is recommended that you undertake the SearchBite : An Introduction to Reinsurance I (Facultative) first, as this explains some of the basic concepts.


Duration: 0.2 day(s) CII CPD Hours: 2

Key programme elements:


•Recap – What reinsurance is and the parties to the contract
•The reinsurance map (to distinguish between types and methods of reinsurance)
•Differences between facultative and treaty reinsurances
•Proportional Treaties: Quota share and Surplus Lines
•The concept of Excess of loss and layering with the various non- proportional treaties
•Aggregate Excess of loss
•Catastrophe Excess of loss
•Stop loss


Examples and simple exercises will help support and reinforce the learning within this SearchBite


By the end of this SearchBite, participants will be able to:


•distinguish between Facultative and Treaty reinsurances using the reinsurance map
•outline the different parties to the contract of reinsurance and explain their relationship
•distinguish between proportional and non proportional reinsurance treaties and provide examples of each
•explain the differences between quota share and surplus Lines treaties
•explain the concept of of Excess of loss, and
•describe the operation of the various types of non proportional reinsurances; aggregate Excess of loss; catastrophe  excess of loss and Stop loss