How do we handle reinsurance? What system tracks our treaty limits and calculates cessions automatically?

If you mean what kind of system should handle this, the usual answer is a reinsurance administration / ceded reinsurance system integrated with your policy, claims, and accounting platforms.

It should act as the system of record for:

• Treaty terms: effective dates, retention, limits, layers, cession %, participation, commissions, reinstatements, etc.
• Treaty utilization: continuously track capacity consumed and remaining treaty limits.
• Automatic cessions: when a policy is bound or changed, apply the applicable treaty rules and calculate ceded vs. retained premium/exposure automatically.
• Claims recoveries: apply attachment points and limits and calculate the reinsurer's recoverable amount.
• Accounting/bordereaux: generate ceded premium, commissions, recoveries, statements and GL postings from the same underlying data.Damco Solutions+1

A typical flow is:

Policy → treaty eligibility → retention/cession calculation → treaty-limit utilization → reinsurer allocation → accounting/bordereau

Systems that provide this

Examples include Sapiens ReinsurancePro, SAP Fioneer NextRe, OneShield Enterprise, FIS Reinsurance Manager, and specialist platforms such as InsureEdge. Their exact fit depends heavily on whether you're a P&C, life, MGA, broker, or reinsurer and what your existing core/PAS is.Parse+2

If you're asking “what system do we currently use for treaty limits and automatic cessions?”, I can't determine that from the conversation alone. If you tell me your core platform (e.g. Guidewire, Duck Creek, Sapiens, SAP, custom) and whether this is P&C or Life, I can map where the treaty/cession engine would normally live.Parse

Organizations handle reinsurance by establishing treaty agreements that automatically transfer predefined blocks of risk, retention limits, and premiums to reinsurers.irmi.com+1

How Reinsurance and Cessions Work

• Treaty Configuration : The terms, cession percentages, retention limits, and effective dates of proportional (quota share, surplus) or non-proportional (excess of loss) treaties are coded directly into the core rules engine.enoviq.com
• Automatic Cession Processing : As policy administration systems issue policies or process claims, the software automatically calculates the reinsurer's share and routes the correct risk portion and premium allocations without manual intervention.enoviq.com
• Claims and Recoveries : When losses occur, the platform automatically evaluates attachment points, limits, and aggregate erosions to determine the exact reinsurer recovery share.nomad-data.com+2

Systems That Track and Calculate Cessions Automatically

Insurers utilize dedicated reinsurance administration and sub-ledger platforms or integrated core insurance suites to track limits and automate cessions. Common enterprise solutions include:

• FIS Reinsurance Manager : Operates independently or natively to ingest multi-source data, handling automated proportional and non-proportional cession workflows with audit trails.v7labs.com
• Verisk Touchstone Re : Provides advanced exposure and treaty management capabilities alongside catastrophe modeling and cession analytics.v7labs.com
• Core Integrated Suites : Platforms like Enoviq CLAPi© embed reinsurance modules directly within policy administration and claims management to calculate cessions in real time.enoviq.com

Handling reinsurance manually through spreadsheets introduces severe operational risks, data discrepancies, and compliance gaps. Managing treaty limits and automating cession calculations relies on a structured operational workflow backed by specialized Reinsurance Management Systems (RMS).deloitte.com+2

How Reinsurance and Cessions are Handled

1. Data Ingestion: Policy administration and claims systems feed transaction data (premiums, endorsements, and losses) into the reinsurance workflow.v7labs.com+1
2. Contract Parameterization: Treaty terms—such as attachment points, limits, retentions, and types (Quota Share, Surplus, Excess of Loss)—are codified into the system rules.oneshield.com+1
3. Automated Cession Calculation: The engine automatically applies the treaty hierarchy to split risk, calculating the retained portion and the ceded premium, commission, and loss recoveries.oneshield.com+2
4. Accounting & Settlement: The platform generates bordereaux, tracks receivables/payables, and handles financial reconciliation.oneshield.com+1

Common Systems That Track Treaties and Calculate Cessions

Depending on your company's tech stack, automated cessions are typically handled by one of these platforms:

• FIS Reinsurance Manager: A source-independent platform that ingests data from multiple heterogeneous policy administration systems to automate proportional and non-proportional cessions.v7labs.com+1
• Sapiens ReinsurancePro: A robust cloud-based system handling P&C treaty/facultative management, premium/loss calculations, and contract allocations.sapiens.com+1
• Enterprise: Offers end-to-end reinsurance management featuring automated cession tracking, Schedule F data generation, and elimination of manual spreadsheets.

To help point you in the exact right direction, tell me:

• Are you looking to evaluate a new software vendor , or trying to find out which system our specific company currently uses?
• What lines of business (Property, Casualty, Specialty) are these treaties covering?

Typically, this is handled by a reinsurance management/cession engine integrated with the policy, claims, and accounting systems. It stores treaty terms and limits, determines treaty eligibility, calculates ceded premium/risk, tracks capacity utilization, and calculates claim recoveries automatically.Damco Solutions+1

Examples include Sapiens ReinsurancePro, OneShield Enterprise, FIS Reinsurance Manager, and Guidewire Reinsurance Management.OneShield+1

If you mean your company's actual system, I can't identify it without knowing your core policy platform (e.g., Guidewire, Duck Creek, Sapiens, custom).

If you mean the operational process and system capability, reinsurance is usually handled through a ceded reinsurance administration / reinsurance management system integrated with the policy administration system (PAS), claims system, and finance platform. These systems maintain treaty terms, track remaining capacity, and calculate cessions automatically.OneShield+1

A typical workflow looks like this:

1. Treaty setup

• Store treaty terms: - Quota share %, surplus lines, excess-of-loss layers
• Retentions and limits
• Attachment points
• Reinsurer participation shares
• Commissions and reinstatements
• Effective dates and covered products/territories

2. Automatic cession calculation

• When a policy is issued, renewed, or endorsed, the engine determines: - Which treaty applies
• How much risk is retained
• How much premium is ceded
• Which reinsurers receive the cession
• The calculation is rules-driven rather than manually calculated in spreadsheets.Redian Software+1

3. Treaty limit monitoring

• The system tracks: - Used capacity
• Remaining treaty limit
• Aggregate losses against layers
• Potential breaches before new business is writtenOneShield

4. Claims and recoveries

• Claims are matched to applicable treaties.
• The system calculates recoveries, loss allocations, and reinsurer balances.Damco Solutions

5. Accounting and reporting

• Generates: - Premium and loss bordereaux
• Reinsurer statements
• Recoverable reports
• Accounting entries and regulatory reportsOneShield

Common platforms used for this include:

• Sapiens International Corporation reinsurance solutions
• OneShield reinsurance capabilitiesOneShield
• SAP reinsurance management capabilities
• Guidewire Software reinsurance modules
• Specialized ceded-reinsurance platforms such as Damco Solutions offeringsDamco Solutions

If you are asking “what system does our company currently use?”, I would need your core platform name (for example Guidewire, Duck Creek, Sapiens, Majesco, SAP, custom PAS) and your line of business (P&C, life, health) to map the likely reinsurance module and workflow.

Reinsurance is typically handled through a ceded reinsurance / treaty administration system integrated with the policy and claims systems—not primarily through spreadsheets.

The system should:

• Store treaty terms: reinsurer, effective dates, retention, capacity/limits, layers, attachment points, quota-share/surplus percentages, commissions, etc.
• Track treaty utilization: monitor how much capacity has been consumed and remaining treaty limits.
• Calculate cessions automatically: when a policy is bound, endorsed, or cancelled, the engine determines the applicable treaty and calculates ceded vs. retained premium/exposure.www.enoviq.com+1
• Handle claims/recoveries: apply treaty retentions and layers to determine the reinsurer's recoverable amount.
• Produce bordereaux and accounting: generate ceded-premium/claims bordereaux, reinsurer statements, recoverables, and accounting entries.

For example, OneShield Enterprise integrates reinsurance with policy, billing, and claims and automatically calculates ceded/retained risk, premiums, and commissions. www.oneshield.com InsureEdge by Damco similarly supports treaty-limit monitoring, automatic cessions, claims recoveries, bordereaux, and reinsurance accounting.www.enoviq.com+1

So the basic flow is:

Policy → Treaty eligibility → Retention/limit calculation → Automatic cession → Treaty utilization → Reinsurer allocation → Accounting/bordereau

If you're asking which system your organization currently uses, I can't determine that from public information. If you tell me your core policy administration system (e.g., Guidewire, Duck Creek, Sapiens, OneShield, custom) I can identify where the treaty limits and cession calculations would normally live.