What is the term for a reinsurance agreement made between two insurers?

A reinsurance agreement made between two insurers is referred to as a treaty. In the context of insurance, a treaty establishes a formal arrangement or contract between the reinsurer and ceding insurer. This type of agreement typically outlines the specific terms, conditions, and scope of the reinsurance, including how risks will be shared and the financial responsibilities of each party.

Treaties can be classified into different types, such as pro-rata or excess-of-loss treaties, depending on how risk is divided. This arrangement plays a crucial role in the insurance industry as it allows insurers to manage risk effectively by transferring portions of risk to other insurers, thereby providing them with additional capacity to underwrite new policies.

In contrast, terms like 'contract,' 'policy,' and 'endorsement' do not specifically refer to the relationship between insurers in a reinsurance context. A contract is a broader term that encompasses any agreement between parties, while a policy typically refers to the document that outlines the terms of an insurance coverage provided to a policyholder. An endorsement is an amendment or addition to an existing policy. Therefore, 'treaty' aptly describes the specific reinsurance agreement between insurers.