BusinessSeptember 6, 2026

facultative

fuh-KUL-tuh-tiv

Definition

A type of reinsurance coverage that applies only to a specific, individual risk or policy, rather than to a whole portfolio of risks.

Etymology

Derived from the Latin 'facultas', meaning ability or power, the term entered English via medieval Latin 'facultativus', referring to something that is optional or contingent rather than mandatory.

In the news

The article lists property 'facultative' as a core business area where the new Willis Re is focusing its growth efforts. It is used here to identify a specialized, non-blanket form of insurance coverage.

New Willis Re eyes AI to give valuable time back to brokers

Read the full article ↗

Intelligent Insurer

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