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Facultative Reinsurance

Beach & Associates has a dedicated facultative division to deliver full service single risk reinsurance solutions.

We have strong long-term relationships in the facultative reinsurance market and strive to offer our clients the highest level of advice on structuring options and marketing strategies supported by responsive service.

In all facultative placements, we obtain from the client a detailed understanding of the risk and price expectation before entering the marketplace. Being independent, B&A has no conflict of interest with the direct market and offers highly confidential service.

B&A provides access to the worldwide facultative reinsurance market including all the APRA and Canadian regulated local reinsurers. On each facultative risk we discuss marketing and security with our clients prior to placement. This allows market specific information on each reinsurer to be taken into consideration at the time of each placement.

We seek to mitigate the possibility of reinsurance disputes through high standards of documentation and service. The facultative reinsurance market in general can be tardy in executing accurate and timely facultative reinsurance documentation (whether direct and/or via a reinsurance broker), or reinsurers seek to impose their own ‘standard’ facultative conditions on a cedant which may not always be in the client’s best interests. We prepare, on behalf of our clients, pre-agreed facultative conditions to create a standard client specific facultative reinsurance template. This template includes the client preferred mechanisms for resolving contractual disputes, such as mediation and arbitration processes.

Beach & Associates has extensive experience in setting up and managing facultative facilities, both on an obligatory or offer and acceptance, with local and overseas reinsurers. Facilities allow clients to place facultative business with pre-agreed rates and/or conditions on a per risk basis. Reporting can be monthly or quarterly by bordereau. B&A currently manages five facilities in the Australian market and two in North America for various classes of business.