What Is Facultative Reinsurance - Web facultative reinsurance, a key component of risk management in the insurance sector, involves the purchase of coverage by a primary insurer to manage a specific risk or a block of risks within its portfolio. Web facultative reinsurance is a type of reinsurance that involves the individual underwriting of a specific risk or a specific policy by the reinsurer. Unlike treaty reinsurance, which covers a portfolio of risks, facultative reinsurance is tailored to address a particular policy or exposure. Web facultative reinsurance is commonly used when the original policy’s coverage limits are larger than what the ceding insurance company is comfortable with or able to.
Web facultative reinsurance is a type of reinsurance that involves the individual underwriting of a specific risk or a specific policy by the reinsurer. Web facultative reinsurance is commonly used when the original policy’s coverage limits are larger than what the ceding insurance company is comfortable with or able to. Unlike treaty reinsurance, which covers a portfolio of risks, facultative reinsurance is tailored to address a particular policy or exposure. Web facultative reinsurance, a key component of risk management in the insurance sector, involves the purchase of coverage by a primary insurer to manage a specific risk or a block of risks within its portfolio.