Treaty Reinsurance Software — Structure, Premium and Adjustment
Quota share, surplus and excess of loss structures with participations across the market panel, the premium mechanics a treaty actually carries, and the adjustments that arrive across the period — held on one record rather than reassembled each time.
A treaty is negotiated once and lived with for a year
Facultative pressure is turnaround — the same cycle, quickly, many times. Treaty pressure is the opposite. The placement happens once, and then the treaty has to be administered across its period: premium arriving on a schedule rather than in one payment, adjustments as the underlying book moves, commission that depends on how the year performs, and closings that follow each of those events.
That is where treaty administration in a spreadsheet stops working. The structure is stable but the numbers are not, and every adjustment means recomputing each participant's position by hand and producing another set of notes. Six months in, the workbook and the market's understanding have quietly diverged.
Regure holds the treaty as a structured record with its participations and its premium mechanics, so an adjustment recalculates per market and produces the documents rather than starting another round of arithmetic.
For the underlying concepts see treaty reinsurance, quota share and excess of loss.
What the structure changes
The structure is not a label on the deal — it determines how premium is built and how each participant's share is computed. QS, surplus, XoL and facultative structures are supported. Additional treaty structures are configured during implementation.
Quota share
A fixed proportion ceded across the panel, with retention and cession constant for the treaty and ceding commission applied per participant.
Surplus
Cession varying by risk within the treaty, with the aggregate retention and cession position carried for reporting while participants hold their own shares.
Excess of loss
Non-proportional cover with its own premium basis, participations across the panel and the deposit and minimum premium mechanics that usually come with it.
Because the structure vocabulary is a setting rather than a fixed list in the product, a treaty written in terms your last system could not express is a setup question rather than a change request.
The parts that usually send a broker back to a spreadsheet
These are surfaced only where a treaty uses them — a firm that does not run profit commission never sees the field.
| Mechanic | How it is held |
|---|---|
| Participations | Each participant's share on the panel with its own commission and brokerage position, rather than a blended rate across the treaty. |
| Deposit and minimum premium | Held on the treaty and carried into the closing and the schedule. |
| Instalments | A payment schedule with due dates, amounts and payment status tracked across the period. |
| Ceding commission and brokerage | Applied per participant when premium is allocated across the panel. |
| Profit commission | Rate, threshold and base held on the treaty, so the performance-linked element is part of the record rather than a year-end calculation done elsewhere. |
| No-claims bonus | Rate and threshold where the treaty carries one. |
| Taxes and fees | Configurable tax lines with their own rate and basis, applied on the appropriate amount. |
| Period of cover | Start and end held on the treaty and used when validating whether a claim falls inside it. |
Walk us through your treaty book
Bring a treaty — its structure, participations and premium mechanics — and we will set it up and run an adjustment through it in a working session.
Adjustments, claims and renewal
Adjustments and endorsements
A mid-term change — a premium adjustment, a change in the underlying, an extension — re-runs the allocation for the delta and produces additional or return premium per participant, with cedant and reinsurer closings generated to match. The endorsement history stays on the treaty.
Claims against the treaty
A claim is checked automatically against the period of cover and against a bound cession with signed participations, then allocated across participants by signed share. Claim closings follow — a debit to each participant and an advice to the cedant. An out-of-period or unplaced claim is flagged rather than quietly accepted.
Premium through the year
Instalments carry due dates and payment status, so what is outstanding on a treaty is a property of the record rather than a reconciliation exercise. Settlement and cash matching remain with the accounting or ledger system.
Renewal
The expiring treaty — its structure, participations and premium mechanics — is the starting point for the renewal rather than a document someone reads and re-keys.
What runs today, and what the structure library covers
Running today
Quota share, surplus and excess of loss structures driving the premium build. Participations across the panel with per-participant commission and brokerage. Deposit and minimum premium, instalment schedules with payment status, profit commission, no-claims bonus and configurable tax lines. Period of cover. Adjustments with per-participant deltas and matching closings. Claims validated against period and bound cession. Slip, debit and credit notes with multi-currency conversion. Audit trail throughout.
Set by your treaty terms
Structures, participants, currencies, commission and tax treatment and document templates are held as settings against the treaty rather than fixed in the product. Additional treaty structures are configured during implementation, so a treaty written in terms the platform has not seen before is a setup exercise rather than a rebuild. Portfolio and exposure analytics across a treaty book can be scoped as part of implementation.
What treaty brokers ask
What treaty structures are supported?
Quota share, surplus and excess of loss structures drive the premium build, alongside facultative. Additional treaty structures are configured during implementation — the structure vocabulary is configuration rather than a fixed list in the platform.
How are participations handled?
Each participant holds its own share with its own ceding commission and brokerage position, rather than a blended rate across the treaty. Premium is allocated per participant and the closings follow those shares.
Deposit and minimum premium, and instalments?
Both. Deposit and minimum premium sit on the treaty, and the instalment schedule carries due dates, amounts and payment status. Settlement and cash matching remain with the accounting or ledger system.
What about profit commission?
Held on the treaty with its rate, threshold and base, so the performance-linked element is part of the record rather than a year-end spreadsheet. No-claims bonus is handled the same way.
How are mid-term adjustments handled?
An adjustment re-runs the allocation for the delta and produces additional or return premium per participant, with closings generated to match. See closings.
How does this differ from facultative?
The same deal record and placement mechanics, but the pressure is different — a treaty is administered across a period, so the premium schedule, adjustments and performance-linked commission carry the weight. See facultative operations.
Walk us through your treaty book
Bring a treaty — structure, participations and premium mechanics — and we will set it up and run an adjustment through it.