Reinsurance Treaty: The Complete Guide to Treaty Structures, Negotiation, and Risk Transfer (2026)

Last verified: 8 September 2026. Structures: QS / XL / aggregate. Cycle: hard vs soft.

Direct Answer: A treaty is a standing contract. Qualifying risks flow without a new underwrite. Facultative is one submission the reinsurer can decline. Most books run treaty for the class and facultative for the exceptions.

Property-cat treaties still cluster on 1 January. Monte Carlo and Baden-Baden set tone; binding is late December. This page will not invent a global capital figure.

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