What is facultative reinsurance?

Facultative reinsurance is individually negotiated coverage where both cedent and reinsurer evaluate each risk separately. It provides flexible capacity for large, unusual, or complex exposures that don't fit under treaty agreements.

What is a chase list in reinsurance submissions?

A chase list is the ordered set of missing pages, stale schedules, unsigned slips, and unresolved slip-versus-SOV conflicts that block a quote. It is the work queue, not a narrative summary of the file.

Answers / Facultative Reinsurance

What is a facultative certificate?

Q: What is a facultative slip in reinsurance?

A facultative slip is an informal preliminary agreement documenting reinsurer's conditional agreement to cover a facultative placement. Once signed by reinsurers, slip lines aggregate toward the full limit; formal certificate finalizes coverage.

A facultative certificate is proof of facultative reinsurance placement confirming the reinsurer has accepted a specific risk. It specifies terms, coverage limits, conditions, and conditions precedent for the individual placement.

A facultative certificate is evidence of cover after someone has written. Insured, period, limits, share, conditions, reinsurer. The slip is how you got there. The certificate is what the claims desk will be handed. Treating a covering email, or an unsigned slip, as the certificate is how the claim meets a different contract than the quote.

Some markets issue the certificate from the written slip without a second file. Some need a formal request with written lines attached. Either way, the certificate should cite the same insured and period the slip cited, or show a conflict.

How it works

Every field you will need at the loss should already have been a cited field on the slip, or an explicit gap. Named insured legal name. Period. Occurrence limit. Deductible. Share. Interest. Territory. If the slip said TIV as per schedule, the schedule must be in the pack and the TIV field is either traced to the schedule total or in conflict with a figure also printed on the slip.

Extraction on the outbound certificate is the same job as extraction on the inbound slip. Fields, spans, conflicts, gaps. If you only inspect the pack at submission and never inspect the certificate, you have automated the quote and left the contract to luck.

Do not clean the insured name to match a policy admin system without leaving a span to the legal name on the slip. Do not "true up" the share with mental arithmetic on written lines. If several markets wrote on one slip, the certificate for each market is that market's share, on those terms, on that pack version.

Worked example

ACME Construction Ltd, acme.example. Slip period 1 January 2026 to 31 December 2026. Occurrence limit USD 10,000,000 on page 2. Written line 10 percent, which is USD 1,000,000 of that limit. Slip TIV USD 42,000,000. SOV USD 47,100,000. Hours clause still missing.

A certificate that prints 12.5 percent because someone divided wrongly has created a new limit of USD 1,250,000 that nobody wrote. A certificate that attaches the warehouse schedule when the slip never included the warehouse has certified the conflict instead of resolving it. A certificate that copies the covering email's TIV of USD 42,000,000 and drops the schedule has hidden the warehouse that will still be there at the loss. Inspect the certificate against the slip spans. Chase what still disagrees.

What goes wrong

Period shifted by a day. Deductible moved in an email after lines were written. Following market certificate issued on a later SOV than the leader saw. Unsigned draft sent to accounts as bound. Claims notice attached to a broker summary because the certificate PDF was never filed.

What is a facultative certificate?

How it works

Worked example

What goes wrong

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