Trinity Reinsurance Brokers Ltd.

Facultative Reinsurance

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Facultative Reinsurance

In facultative reinsurance, the ceding company cedes and the reinsurer assumes all or part of the risk assumed by a particular specified insurance policy. Facultative reinsurance is negotiated separately for each insurance contract that is reinsured. Facultative reinsurance normally is purchased by ceding companies for individual risks not covered by their reinsurance treaties, for amounts in excess of the monetary limits of their reinsurance treaties and for unusual risks. Underwriting expenses and, in particular, personnel costs, are higher relative to premiums written on facultative business because each risk is individually underwritten and administered. The ability to separately evaluate each risk reinsured, however, increases the probability that the underwriter can price the contract to more accurately reflect the risks involved.

Lines of Business

  • Accident & Health
  • Aviation
  • Cargo
  • Casualty
  • Construction and Engineering
  • Energy (On-shore & Off-shore)
  • Fire
  • Liability
  • Marine Hull
  • Motor Fleet
  • Personal Indemnity
  • Property
  • Space
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