Insurers Using Facultative Reinsurance for Growth Amid Market Softening

LONDON, Sept. 17, 2026 /CourierPR/ -- Willis, a WTW business, has released a new report highlighting how insurers are leveraging facultative reinsurance to fuel growth amid a softening market. The report, titled "Facultative Reinsurance Report 2026," was conducted in partnership with Coleman Parkes Research and surveyed 380 senior decision makers from leading insurance companies across North America, Europe, the Middle East, APAC, and Latin America.

According to the findings, insurers are prioritizing growth and global expansion as they seek to deploy the large reserves of capital accumulated during the hard market. More than half of the respondents, 52%, identified capital management as a key reason for buying facultative reinsurance, up from 44% in 2024. Additionally, 56% of insurers said global expansion was among their greatest opportunities in the next two years, a significant increase from 39% in the previous survey.

The report also reveals that 52% of insurers named entering new markets and risk areas as their top strategic objectives over the next two years, up from 45% in the 2024 survey. Increasing capacity was another top objective for 55% of insurers, up from 48% in the previous survey. These trends indicate a shift in how insurers view facultative reinsurance, no longer seeing it merely as a defensive measure but as a strategic tool to support business priorities.

Garret Gaughan, Global Head of Direct and Facultative at Willis, commented, "While market conditions are creating significant opportunities for growth, insurers remain aware of the risks that could quickly present themselves. Our research shows that facultative reinsurance is increasingly being used as a strategic tool to help insurers expand their capacity, enter new markets, and manage capital efficiently. At the same time, it provides valuable flexibility as organizations navigate uncertain times."

The survey further highlights growing concerns around emerging risks, including geopolitical tensions, cyber threats, and climate-related exposures. Sixty percent of insurers expect to increase their use of facultative reinsurance over the next two years, compared with just 13% who plan to buy less. This underscores the growing importance of facultative reinsurance across the market cycle.

Eighty-two percent of insurers saw facultative reinsurance as a key part of their strategies for managing risk, capacity, capital, and appetite, while only 22% said they used facultative as a last resort, down from 28% in the 2024 survey. The report also notes that 57% of insurers cited geopolitics as the emerging risk they are most concerned about, up from 52%. Cyber threats and climate-related exposures were also top concerns, with 54% and 40% of insurers, respectively, citing them as significant risks.

In conclusion, the report confirms that facultative reinsurance is playing a crucial role in insurers' strategies to manage risk and capitalize on growth opportunities. As market conditions continue to evolve, insurers are increasingly relying on facultative reinsurance to navigate the complexities of the insurance landscape.