What are the two main forms of facultative reinsurance?

Q: What are the two main forms of facultative reinsurance?

Proportional facultative : The reinsurer takes a share of premiums and losses. Non-proportional facultative (excess of loss) : The reinsurer pays when a loss exceeds an agreed amount on that risk.

Written by Melanie Gard on 2 October 2025.

What are the two main forms of facultative reinsurance?

Category: Facultative Reinsurance

Proportional facultative: The reinsurer takes a share of premiums and losses.
Non-proportional facultative (excess of loss): The reinsurer pays when a loss exceeds an agreed amount on that risk.

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