In a recent article published in The Insurer, Christos Charitos, Vice President, Head of Casualty Facultative Reinsurance at Sompo, shares his perspective on trends and prospects for the casualty facultative market heading into 2022.
“Looking ahead, we believe that facultative reinsurance is likely to become even more important in the next 12-18 months,” he said. “For carriers looking for solutions, facultative reinsurance can be a nice way to supplement or replace treaty support, depending on the situation.”
Highlighting the importance of disciplined underwriting, he added, “Underwriters, carriers, and reinsurers all need to be disciplined with capacity. Right now, there are a lot of question marks in the industry with where things are going, and we have to be disciplined with what we’re putting out in the market. Those who get caught putting out very long limits for questionable pricing are going to have a hard time in the long run.”