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Facultative Reinsurance: Definition, Vs. Treaty Reinsurance

Financial Concepts

Definition

Facultative reinsurance is coverage purchased by a primary insurer to cover a single risk—or a block of risks—held in the primary insurer's book of business. Facultative reinsurance is one of two types of reinsurance (the other type of reinsurance is called treaty reinsurance). Facultative reinsurance is considered to be more of a one-time transactional deal, while treaty reinsurance is typically

In Panel Profits

In the Panel Profits market platform, Facultative Reinsurance: Definition, Vs. Treaty Reinsurance applies standard financial concepts principles to comic assets and physical collections.

Common mistakes

Do not infer unobserved prices.