REINSURANCE-FACULTATIVE

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.