Once viewed as the "frontier end of the business," facultative reinsurance is fast becoming mainstream–claiming 20 percent of the worldwide reinsurance market, a facultative expert said.
"The market has really grown in the last few years. It's actually the original form of reinsurance before treaty was invented," explained Elliot Richardson, chief executive officer of the Aon Re global facultative unit. "Individual risk reinsurance was the beginning of the reinsurance market."
Until seven or eight years ago, he said, facultative reinsurance was purchased on a decentralized basis. Individual line underwriters in the field would buy individual reinsurance for a particular account, and the central management of a company concentrated on the treaty reinsurance and large purchases.
Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader
Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
- Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
