Facultative reinsurance is case-by-case risk transfer from an insurer to a reinsurer for a specific policy that falls outside automatic binding limits or requires special expertise. The reinsurer underwrites the individual risk and issues a facultative offer the ceding company may accept. Facultative placements help insurers write impaired risks, large face amounts, or unusual hazards by sharing mortality exposure and leveraging reinsurer underwriting perspectives.

On complex or jumbo cases, underwriters seek facultative support and share full files with reinsurers. Advisors strengthen submissions with cover letters highlighting stability or credits. A favorable facultative offer can move a case from decline to table rating-or from table to standard-expanding options for clients with challenging histories.