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What is the broad two types of reinsurance treaties , give example for each one

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Question added by Mamoun elbaghir abdalla mhamad Eltayeb , Insurance agent / Producer , Albaraka Insurance Company
Date Posted: 2015/03/11
Mamoun elbaghir abdalla mhamad Eltayeb
by Mamoun elbaghir abdalla mhamad Eltayeb , Insurance agent / Producer , Albaraka Insurance Company

The broad two types of reinsurance treaties are :-

 1/ Proportional reinsurance treaties such as Quota share treaty and Surplus treaty.

 2/ Non - proportional treaties such as Excess loss treaty and Stop loss treaty.

 Thanking you , With my very best wishes.

 

Waleed Halees
by Waleed Halees , Corporate Insurance Specialist , Abu Dhabi National Insurance Company (ADNIC)

There are two types of Reinsurance:

1. Treaty: agreement between insurance company (The Insurer) and other partners in which the partners accept specific portfolio of risks as agreed despite of the severity and frequency

2. Facultative:  The Insurer shall approach for support of reinsurance market for individual risk only which is excluded from its Treaty.

 

Farah Husni
by Farah Husni , Supply Chain Manager , Supply Chain Corp

The reinsurer accepts a specific level of risk from the primary insurer and it has a partnership in which the insurer and reinsurer share risks at an agreed-upon level.

 

In facultative reinsurance, the primary insurer identifies which risks it wants to cover and which risks are ceded to the reinsurer.

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