Recruiter's Glossary

Examples: Surplus Lines • E&O Insurance • Subrogation

Treaty

Term from Insurance industry explained for recruiters

A Treaty is a special type of agreement between insurance companies where one company agrees to take on some of the risk from another company. Think of it like sharing the weight of heavy boxes - instead of one company carrying all the risk alone, they spread it among several companies. This helps insurance companies manage their risks better and protect themselves from big losses. When you see "Treaty" on a resume, it usually means the person has experience working with these large-scale insurance sharing arrangements, either in creating them, analyzing them, or managing them.

Examples in Resumes

Managed Treaty negotiations with international reinsurance partners

Analyzed and reported on Treaty performance metrics for $50M portfolio

Led Treaty renewals for property and casualty insurance programs

Typical job title: "Treaty Underwriters"

Also try searching for:

Treaty Analyst Treaty Manager Reinsurance Underwriter Treaty Administrator Treaty Broker Reinsurance Treaty Manager Treaty Operations Specialist

Where to Find Treaty Underwriters

Professional Organizations

Industry Resources

Example Interview Questions

Senior Level Questions

Q: How would you handle a difficult treaty renewal negotiation where the partner wants to significantly increase rates?

Expected Answer: Look for answers that demonstrate experience in relationship management, understanding of market conditions, ability to analyze loss ratios and risk data, and skills in finding compromise solutions that benefit both parties.

Q: Describe a situation where you had to recommend changes to a treaty program. What was your approach?

Expected Answer: Strong answers should include examples of analyzing program performance, understanding client needs, market research, and ability to present complex recommendations in a clear way.

Mid Level Questions

Q: What key factors do you consider when reviewing a treaty's performance?

Expected Answer: Candidate should mention loss ratios, claims patterns, premium adequacy, market conditions, and relationship with the treaty partner.

Q: How do you stay updated with treaty compliance requirements?

Expected Answer: Look for answers involving regular review of treaty terms, communication with partners, monitoring regulatory changes, and use of compliance tracking systems.

Junior Level Questions

Q: Can you explain the basic difference between facultative and treaty reinsurance?

Expected Answer: Should explain that treaty covers a whole book of business automatically, while facultative is case-by-case, using simple terms and examples.

Q: What documentation is typically required for treaty renewals?

Expected Answer: Should mention loss runs, exposure data, premium information, and basic treaty terms in their answer.