Why use an intermediary like Oak Tree?
Access to global markets: Securing reinsurers with appetite for South African risks.
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FAQ Category: Treaty Reinsurace
How often are treaties renewed?
Typically annually. In South Africa, renewals align with global cycles (1 January, 1 July),...
What happens if treaty limits are exhausted?
Losses above the treaty cap remain the cedant’s responsibility, unless additional layers are...
What information do reinsurers expect in a treaty submission?
5–10 years of loss data.
Premium and exposure breakdowns.
Accumulation control...
How does treaty reinsurance interact with solvency regulation in South Africa?
Reinsurance reduces insurers’ required capital under the Prudential Authority framework....
How do reinsurers price treaties?
Pricing depends on:
Loss history and credibility.
Exposure data (by peril and...
What are reinstatements in an excess-of-loss treaty?
They allow cedants to restore treaty cover after a loss event, usually for an additional premium.
What is a ceding commission?
The allowance reinsurers pay back to cedants on proportional treaties to cover acquisition and...
What does “market volatility” mean for treaties?
Inflation drives up repair/replacement costs, making historical loss data less predictive....
How does AI affect reinsurance discussions?
AI introduces professional indemnity and liability exposures that are hard to model. Reinsurers...