Facultative reinsurance can help insurers write more business, manage volatility and capture emerging opportunities, says Marsh Re’s Toby Wemyss
As the global market softens and becomes more competitive, an increasing number of cedants are looking to address these challenges by leveraging both treaty and facultative reinsurance solutions. Facultative reinsurance structures can help cedants capitalise on market opportunities, improve capital management and advance underwriting strategies.
Marsh Re’s dedicated facultative unit — Marsh Re Fac — places over $4.5 billion in premium annually through more than 300 specialists across 32 offices on six continents. Importantly, this scale is matched by local execution: teams on the ground who understand domestic regulation and local market practice and appetite, supported by global coordination when placements need multiterritory access or specialist capabilities.
The creation of Marsh Re Fac has simplified our proposition globally. Client feedback is consistent: they value the clarity, and they increasingly treat Marsh Re Fac as the first — and often only — call for facultative solutions. That clarity matters in a more competitive market, where cedants want speed, certainty of outcome and consistent service, whether they are placing a single large loss-sensitive risk or building a programmatic solution across a portfolio.
New risk classes are creating structural demand. Cyber, energy transition assets (offshore wind, battery energy storage systems, solar), AI data centers and US infrastructure routinely exceed treaty limits or carry novel exposures that are better served by facultative reinsurance. In this environment, speed of execution and confidence in risk selection matter as much as capacity.
That is why Marsh Re Fac is investing in digital innovation and analytics to help clients make better, faster decisions. Building on Marsh Re’s analytics capabilities, we are combining market intelligence, technical placement insight and data-driven analysis to support more informed underwriting and portfolio management. In addition, Marsh Re is also investing in digital placement technology to offer streamlined risk transfer and reduce the traditional barriers and friction of transacting higher volumes of lower-premium business. The goal is practical: to help clients grow with greater certainty, identify where they can deploy capacity more profitably and manage volatility when conditions shift.
Facultative solutions structured by Marsh Re allow insurers to write more business, improve their financial ratings and offer clients coverage enhancements they could not otherwise access. That growth story for insurers and their end clients is what defines a strategic facultative relationship that enables confident expansion while protecting balance sheets against volatility.
Proven growth engine — with further to go
Growing when rates are falling is the hardest test of a business model — and Marsh Re Fac is passing it.
In addition to greater market access, clients benefit from highly specialised expertise across insurance risk areas. Digital platforms, expanded facilities and targeted senior hires are all in progress. Marsh Re Fac draws on the industry’s most respected experts across property, casualty and other specialised disciplines to deliver greater value. Our model focuses on speed, superior relationships and expertise, developing innovative risk transfer solutions across the marketplace.