Facultative reinsurance refers to the coverage of significant individual risks outside of obligatory reinsurance.
In particular, insurers tend to reinsure complex risks of large undertakings with sizeable operating facilities
spanning several countries or extensive production processes on an individual risk basis so as to spread the
risk exposure worldwide. Our clients, for example, reinsure insurance risks associated with financial groups,
real estate companies, undertakings in the food industry, rail operators, municipalities, semiconductor and IT
manufacturers, carmakers or airline companies on a facultative basis.
A key element of the risk analysis focuses on the existing assets, usually in the form of property. These may
be endangered by human or technical failure or by natural events; insurers reinsure them on an individual
risk basis in order to spread the risk exposure globally. Extensive in-depth know-how, especially in the natural
sciences and risk modelling, is needed in order to provide facultative reinsurance. Hannover Re has vigorously
expanded its facultative business and can offer customers a more comprehensive service combined with
growing reinsurance capacity.
