Treaty and facultative wordings from your clause library

A treaty or facultative wording drafted from your clause library starts from the precedent you choose and uses the clause versions your team has approved, with anything outside the library labeled for review. The document engine we build drafts that way, and answers questions across the treaties and certificates you have already signed.

How a treaty wording comes together

A treaty reinsures a portfolio for a period, usually a year, and is renegotiated at each renewal. The terms are agreed first on a slip or MRC. The full wording follows, and contract certainty means its terms are agreed in full before the treaty incepts.

Many wording teams build from a clause library. It holds approved versions of the clauses that recur across treaties, such as insolvency, arbitration, access to records, sanctions and the loss occurrence definition, along with the exclusions the house applies to every property treaty. The library changes over time. When a clause is revised after a dispute or a change in regulation, the old version stays in every treaty signed before the change.

Each reinsurer on a panel can ask for its own version of a clause as a condition of its line. When lines on the same layer carry different terms, the placement is non-concurrent, and one loss can be paid differently by reinsurers who expected to share it on the same basis. At the January 2024 renewal, Guy Carpenter reported that the market "increased contract-level consistency on both wording and structural variations," and credited early discussion of subjectivities such as strike, riot and civil commotion, terror and cyber with material concurrency improvements.

Clauses a regulator reads

Some clauses decide whether a US ceding company can take credit for a treaty on its balance sheet, and a wording team needs to know they are present in every treaty in force.

Ask the engine which in-force treaties carry an insolvency clause, and it returns the clause as it appears in each treaty, with the treaty it sits in, so your team can compare each one with the current library version. A passage has to be found in one of your documents before it is written as an answer. A treaty where no such clause can be found is flagged for a person, and so is any page with no readable text, such as a signed scan.

Drafting a renewal from the library

You give the engine the deal inputs, such as the layer, retention, limit, reinstatements and period, and the precedent to start from, usually last year's signed wording. Where your library and house rules cover a clause, the draft follows them. Where your team kept a negotiated variation last year, the draft can carry it forward from the precedent. Language the engine suggests beyond those sources is labeled until your team adopts it.

Draft the 2027 property catastrophe renewal from last year's signed wording 34 clauses · 2 changed · 1 for you

Drafted

Calloway Mutual, Property Catastrophe Excess of Loss 2027 payable directly to the Reinsured, or to its liquidator, without diminution Article 19, Insolvency · library version of March 2026

Drafted

Calloway Mutual, Property Catastrophe Excess of Loss 2027 all losses arising within any period of 72 consecutive hours Article 5, Loss Occurrence · kept from the 2026 signed wording

For you

Harlow Re, quote for the second layer

Harlow's quote asks for its own cyber exclusion. That wording is outside your library, so it is labeled in the draft and left for your wording team.

Drafted clauses come from your library or last year's signed wording. Every clause opens the document it was taken from.

The companies, clauses and dates in this example are invented. No client material appears anywhere on this site.

When a reviewer approves or corrects a clause, the next draft follows that choice. If your team accepts a reinsurer's amended arbitration clause, that decision is kept as a rule in your own system, and the next draft for that reinsurer starts from it. None of it trains a model.

A group that buys one treaty for several of its insurance companies can have the same deal drafted on the paper of each carrier entity. The draft stays a draft until a reviewer approves it. The engine does not sign, bind or send anything to market, and it makes no underwriting or pricing decisions.

Facultative certificates and the policy underneath

Facultative reinsurance covers one risk, and many certificates adopt the terms of the original policy. A question about what a certificate covers therefore often turns on the original policy and the endorsements added to it. The engine reads a policy with the endorsements that amend it, so an answer reflects the wording in force. Whether a later endorsement binds the reinsurer depends on the certificate, and the engine returns both passages for your team to read together.

Old treaties and the questions that come back

A question about a casualty treaty from ten years ago can arrive during a commutation or an arbitration, after the wording team has changed.

The engine answers across the executed treaties and certificates you hold, from any year. An answer points at the document as it read that day, and later edits do not change it. Copies of the pages you relied on are kept past your storage provider's file history. Every answer records who asked, who approved it, and when.

Each client has its own system, with its own database, network and sign-in, run by us on our infrastructure. We sign an NDA before any document is shared. A vendor review will ask for some things we do not have today, such as a SOC 2 report, and the security page lists them.

When a shared product is the better fit

If most of your treaties are written on market-standard wordings with few changes, and your facultative business goes out on a standard certificate, a shared wording or contract management product will usually serve you better. We say so on the first call.

See it on your own documents

A useful test is a renewal your team has just finished. Book a consultation or demo. After an NDA, we build a fixed-price, one-week prototype on your own clause library and signed treaties, and you can compare its draft with the wording your team agreed. If a build follows, it is quoted at a fixed price, with deliverables in writing, before work starts.