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Third-party administrator (TPA)

A firm that handles various types of administrative responsibilities on a fee-for-services basis for organisations involved in cash flow programmes. These responsibilities typically include claims administration, loss control, risk management information systems, and risk management consulting.

Treaty

An agreement between an insurer and a reinsurer stating the types or classes of businesses that the reinsurer will accept from the ceding insurer.

Treaty reinsurance

A form of reinsurance in which the ceding company makes an agreement to cede certain classes of business to a reinsurer. The reinsurer, in turn, agrees to accept all business qualifying under the agreement, known as the ‘treaty’. Under a reinsurance treaty, the ceding company is assured that all of its risks falling within the terms of the treaty will be

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