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In the proportional treaty the split of premiums and claims is based in proportional calculations as the ceding company and reinsurers shares each and every dollar of premium and each and every claims in accordance to the percentage that initially determined by the treaty terms and conditions.
while premium in non-proportional treaty is to be paid in advance and subject to adjustment at the end of the treaty period. And the reinsurers only share claims that exceeding the retention of the ceding company
that is to say all claims below the retention of the ceding company not transfer to reinsurers and bears only by the direct insurance company's account .
I have come to conclude that the accounts and assessment of the proportional treaty is mainly depend on premium while non-proportional treaty depend on claims.
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