Why it is used
It supplies capacity, expertise, or terms not available within the cedant's automatic treaties.
Reinsurance Intelligence · Placement practice
All conceptsFacultative Placement
A specific risk is presented to one or more reinsurers for individual underwriting and acceptance.
Illustrative example
A large power project is syndicated across facultative reinsurers with defined shares and common terms.
Programme questions
- Complete submission and engineering data
- Order, signed lines and contract certainty
- Follow-the-settlements and claims cooperation
Educational overview only. Reinsurance effect depends on the complete contract, programme structure, accounting basis, law, facts, and counterparties. The original insurer normally remains responsible to its policyholder.