what is treaty reinsurance 
treaty reinsurance is insurance purchased by an insurance company from another insurer the company that issues the insurance is called the cedent who passes on all the risks of a specific class of policies to the purchasing company which is the reinsurer treaty reinsurance is one of the three main types of reinsurance contracts the two others are facultative reinsurance and excess of loss reinsurance understanding treaty reinsurancetreaty reinsurance represents a contract between the ceding insurance company and the reinsurer who agrees to accept the risks of a predetermined class of policies over a period of time 