How does facultative differ from treaty reinsurance?

Q: How does facultative differ from treaty reinsurance?

Facultative : Case-by-case, risk-specific, individually negotiated. Treaty : Automatic coverage for a defined book of business. Facultative provides flexibility where treaties exclude or limit certain risks.

Written by Melanie Gard on 2 October 2025.

How does facultative differ from treaty reinsurance?

Category: Facultative Reinsurance

Facultative: Case-by-case, risk-specific, individually negotiated.
Treaty: Automatic coverage for a defined book of business. Facultative provides flexibility where treaties exclude or limit certain risks.

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