Reinsurance Facultative
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Case-by-case reinsurance for large risks.
Definition
Carrier submits a Submission Slip (risk summary) to multiple reinsurers who individually quote. Typically covers risks >$50M (aviation, marine, energy). Lloyd s PPL platform for electronic placement. Standardised MRC slip (Market Reform Contract) in UK. Typical reinsurers: Lloyd s syndicates, AXIS Capital, Everest Re, RenaissanceRe.
Origin
Ancient Lloyd s of London practice (Coffee House 1688) ; PPL digital launch 2018.
Example in context
A new Airbus A380 aviation risk submitted to 8 Lloyd s syndicates via PPL ; faceted cover 12% Lloyd s, 30% Munich Re, 25% Swiss Re, etc.
Related terms
- Reinsurance Treaty — automatic twin.