Non – Proportional Treaty:

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Non – Proportional Treaty is loss – based recovery from reinsurers once the loss exceeds a certain threshold Excess or Deductible.
Non – Proportional reinsurance the ceding company agrees to accept
all losses up a predetermined level.

EXAMPLE:
Insurer may choose to retain up to $ 5mn of losses say in respect of a Fire risk and reckon max loss on account of a fire risk accepted is $ 100mn.
Insurer than can arrange for reinsurance up to $ 100mn (95mn XS 5mn) and it can be done by a single layer or multiple layers.

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