Go The Extra Mile with Fac
Facultative reinsurance: not exactly a household term, is it? Yet it’s possibly one of the most valuable and underutilized tools in an insurer's arsenal. The common misconception that if Fac is needed the deal isn’t worth writing fails to contemplate that writing the deal may have a much bigger impact than walking away.
Fac can be a highly effective tool for insurance carriers that want to grow their book, strengthen their relationships and hone their underwriting skills.
Does that sound a little overblown? Then consider the bigger picture.
Utilizing Fac could help you satisfy a key producer, thus leading to more opportunities. Fac conversations are a way to help underwriters grow more comfortable with tough new exposures, and then share in that exposure. Accommodating that tough exposure may lead to binding extra lines of coverage. Externally and internally, accessing Facultative expertise exhibits “going the extra mile.”
Fac is a valuable part of the risk analysis even if it proves that Fac is not right for your situation. Spot carve-outs, excess limits, PML issues, Nat Cat, net protection and treaty exceptions are some of the options available.
So the next time you find yourself facing a tough exposure on an otherwise desirable account, give us a call. If Fac is the answer, we’ll let you know. And if it’s not, we’ll let you know that, too.