hardConceptDesignSeniorStaff
A claim payment goes out. How does your system work out how much of it a reinsurer owes, and what does that require you to have kept?
5 min readUpdated 2026-08-15
Answer
Short answer
Cession allocates each payment across the treaties covering the policy, and which treaties those are depends on when the policy was written rather than when the claim happened.
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Likely follow-ups
- Why can you not just store the net figure on the claim?
- The treaty attaches at 500,000. Which 500,000 - this payment or the claim total?
- What is a bordereau and who reads it?
- The reinsurer disputes the cession two years later. What do you need?
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