Treaty Reinsurance

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Definition of “Treaty Reinsurance” :

“Treaty Reinsurance” is a type of reinsurance in which the insurance company agrees to cede and the reinsurer agrees to accept all risks of a specific type or category. The terms and conditions are set in advance, and the reinsurer must accept all cases that fall within the scope of the agreement. This is commonly used in South Africa’s insurance industry to manage risk exposure.

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