Glossary Definition: Facultative reinsurance is a type of reinsurance contract purchased by a primary insurer to cover a single, specific risk or policy that is too large, unusual, or high-exposure to fit within standard parameters. Utilizing facultative reinsurance gives carriers maximum flexibility during the insurance underwriting process
for individual multinational factories, mega-vessels, or a complex bespoke insurance policy
that requires independent endorsement beyond a standard treaty-reinsurance agreement.
Facultative Reinsurance
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