SID Re considers facultative reinsurance for individual risks or defined packages of risks requiring dedicated technical assessment, specialist knowledge or additional capacity.
Facultative reinsurance may be appropriate where:
- The sum insured exceeds existing treaty capacity
- The exposure falls outside treaty terms
- The risk has unusual or complex characteristics
- Specialist underwriting expertise is required
- A project involves several territories or participants
- Bespoke terms or wordings are needed
- The cedant wishes to protect its treaty
- Capacity must be assembled across several markets
Each submission is assessed on its individual merits, including:
- Risk quality and management
- Construction and occupancy
- Claims history
- Original policy terms
- Deductibles and limits
- Survey and engineering information
- Natural-catastrophe exposure
- Business interruption exposure
- Accumulation and concentration
- Pricing adequacy
- Contractual and regulatory requirements
- Portfolio impact
Facultative solutions may be provided on a proportional, excess-of-loss or other specifically agreed basis.