Create treaty

Creates a treaty.

A treaty is an agreement between a primary insurer and a reinsurer in which the primary insurer cedes a portion of risk to the reinsurer.

This API resource supports the create of seven different types of treaties. The exposureId, treatyNumber, cedant, treatyType, and attachmentLevel parameters are required in all requests. Depending on the treatyType specified, different parameters may be required in the request.

Depending on the treatyType, treaties may be applied to analysis calculated different models:

Catastrophe treaties may be applied to results in post-analysis

Catastrophe treaty

Catastrophe treaties are occurrence limit treaties that are not specific to any lines of business. They are cedant-specific and apply only to portfolios that have matching cedant definitions.

For HD models, stop loss and corporate catastrophe treaties are treated as catastrophe treaties. This also applies to DLM or ALM results that are simulated to PLT results—corporate catastrophe and stop loss treaties included in the analyses are treated as catastrophe treaties.

Corporate Catastrophe treaty

Corporate catastrophe treaties insure against a large catastrophe that would impact more than one business unit. They do not take losses until all catastrophe treaties have been applied. All catastrophe treaties, regardless of inuring priority and their placement on analyses or groups, inure to the benefit of a corporate catastrophe treaty.

Corporate catastrophe treaties are not specific to lines of business, but are cedant-specific. For HD models, stop loss and corporate catastrophe treaties are treated as catastrophe treaties.

Non-Catastrophe treaty

Non-catastrophe treaties assist in approximating a per-risk type of reinsurance (such as Quota Share, Working Excess, Surplus Share, Facultative), but from the occurrence limit level. They are line-of-business- and cedant-specific, and they have the ability to have an inuring priority of 1 or 2 applied to them. They inure to the benefit of catastrophe treaties.

Quota Share treaty

A quota share treaty takes losses automatically when the exposure level to which it applies meets the treaty’s line of business, cedant, and date criteria. That means that location or account reinsurance applies when any policy in the account meets the criteria. If a treaty has been set up at the location level, it applies to every location in a qualifying account.

Stop Loss treaty

Stop loss treaties protect a company in the case of multiple losses. Its attachment points and limits are based on aggregate losses instead of on a single occurrence. Stop loss treaties do not take losses until all other treaties have been applied. All treaties inure to the benefit of stop loss treaties. Like catastrophe treaties, stop loss treaties are not specific to lines of business.

For HD models, stop loss and corporate catastrophe treaties are treated as catastrophe treaties.

Surplus Share treaty

Surplus share cessions take losses when the locations to which they are attached are part of an account with policies that meet the line of business, cedant, and date criteria for the treaty, or when the policies to which they are attached meet the line of business, cedant, and date criteria for the treaty.

• If you are creating a surplus share treaty for imported surplus share cessions, the specified treatyNumber must match the REINSID of the imported cession.

Working Excess treaty

A working excess treaty takes losses automatically when the exposure level to which it applies meets the treaty’s line of business, cedant, and date criteria. That means that location or account reinsurance applies when any policy in the account meets the criteria. If a treaty has been set up at the location level, it applies to every location in a qualifying account.