The Fac Files - Grow and defend your business with Cas Fac
Our last Cas Fac entry discussed ways Fac can be used to grow your business by “carving out” tougher exposures, enabling you to write a risk you might otherwise have had to decline.
An additional way facultative reinsurance can be used to grow business is via increased capacity. Often, an insured might need a higher umbrella or protective limit in order to satisfy the needs of a given contract. Or perhaps an insured or an umbrella carrier now wants a $2M primary limit and your company can only write a $1M primary. Using Cas Fac for all or most of those extra limits, instead of allowing the producer to go to the excess markets, keeps the premium, the commission and the producer relationship in house, thus blocking out any potential competitors who may use that excess opportunity to try to quote (and write!) your primary layer as well.
Similarly, Cas Fac reinsurance can be used to help cover unique exposures that might be excluded by reinsurance treaties. This could be especially valuable in handling an unusual request from a very important agent on a particular class or line. Using Fac allows the underwriter to responsibly facilitate accommodations for that class in a way that improves the producer relationship - for an additional premium - without sacrificing the underwriting guidelines of the company. Before you say “No” to your best producer in that situation…be sure to give us a call first.
Our underwriters are always happy to discuss risks of any kind - either a formal submission for a thoroughly underwritten risk requiring specific limits or just a casual conversation; we will chat with you about a prospect’s exposures, our approach, and whether Fac would be a useful tool.