Insurers using facultative reinsurance to fuel a drive for growth, according to Willis survey

A new WTW survey shows insurers plan to expand facultative reinsurance use for growth and capital management as concern over emerging risks rises.

Rhea-AI Summary

WTW (WTW) reports that insurers are increasingly using facultative reinsurance to support growth, capital management and geographic expansion in a softening market.

The 2026 Facultative Reinsurance Report, based on responses from 380 senior insurance decision makers across five global regions, finds 52% of insurers now cite capital management as a key reason for buying facultative cover, up from 44% in 2024. Around 56% see global expansion as a main opportunity in the next two years, and 52% list entering new markets and risk areas as a top strategic objective. The survey shows 60% expect to increase facultative purchases, while concerns about emerging risks such as geopolitics (57%), cyber (54%) and climate (40%) are rising.

Market Context

At publication, WTW was down 2.81% while BRO was down 0.75%; all five listed peers declined, placing...

Analysis

At publication, WTW was down 2.81% while BRO was down 0.75%; all five listed peers declined, placing this insurer-growth survey against a broadly weaker insurance-broker trading backdrop.

Key Figures

Survey respondents: 380 respondents Capital management priority: 52% (up from 44%) Global expansion opportunity: 56% (up from 39%) +5 more

Survey respondents

380 respondents

Facultative Reinsurance Report 2026

Capital management priority

52% (up from 44%)

Insurers identifying capital management as a reason to buy facultative reinsurance

Global expansion opportunity

56% (up from 39%)

Insurers identifying global expansion as a top opportunity over the next two years

Increased facultative use

60%

Insurers expecting to increase use over the next two years

Reduced facultative use

13%

Insurers planning to buy less facultative reinsurance over the next two years

Strategic risk-management use

82%

Insurers viewing facultative reinsurance as key to managing risk, capacity, capital and appetite

Geopolitical risk concern

57% (up from 52%)

Emerging risks identified by surveyed insurers

Cyber risk concern

54% (up from 24%)

Emerging risks identified by surveyed insurers

Key Terms

facultative reinsurance, reinsurance, hard market

3 terms

facultative reinsurance technical

"Facultative reinsurance is helping insurers pursue growth opportunities"

Facultative reinsurance is a form of reinsurance arranged one risk or one policy at a time, where the primary insurer offers a particular exposure to a reinsurer and the reinsurer can choose to accept or decline that specific risk. It matters to investors because it lets insurers transfer unusually large or unusual risks case-by-case, affecting an insurer’s potential losses, capital needs and earnings volatility much like buying insurance for a single expensive item rather than a blanket policy for an entire collection.

reinsurance technical

"the buying of facultative reinsurance"

Reinsurance is when insurance companies buy insurance for themselves to protect against very big losses. It’s like a car owner getting extra coverage from another company so that if there's a serious accident, the financial hit isn’t all on one company. This helps insurance companies stay stable and able to pay out when disasters happen.

hard market technical

"capital built up during the hard market"

A hard market is a phase in the insurance industry when coverage becomes more expensive and harder to obtain: insurers raise premiums, reduce the amount of risk they accept, tighten policy terms, and limit available capacity. Like a tight rental market where fewer apartments are available at higher rents, a hard market matters to investors because it raises costs and uncertainty for companies that buy insurance and generally improves revenue and underwriting discipline for insurers.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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LONDON, Sept. 17, 2026 (GLOBE NEWSWIRE) -- Facultative reinsurance is helping insurers pursue growth opportunities in a rapidly softening market, enabling them to maximize available capacity and expand into new geographies while managing an increasingly complex risk landscape. That’s the conclusion of a new Facultative Reinsurance Report 2026 published today by Willis, a WTW business (NASDAQ: WTW).

The report, conducted in partnership with Coleman Parkes Research, received responses from 380 senior decision makers at leading insurance companies across North America, Europe, Middle East, APAC and Latin America.

The findings show that growth and global expansion are among insurers' top priorities as they seek to deploy the large reserves of capital built up during the hard market. In addition, the survey shows that:

• More than half (52%) of insurers identified capital management as a key reason for buying facultative reinsurance, up from 44% in 2024.
• 56% said global expansion was among their greatest opportunities in the next two years (up from 39%), indicating an increase in insurers writing business overseas to drive growth.
• 52% named entering new markets and risk areas among their top strategic objectives over the next two years, up from 45% in our previous survey, while 55% named increasing capacity as a top objective, up from 48%.
  
  

The results confirm the trend identified in the 2024 survey that facultative insurance is no longer viewed only as a defensive position to protect against problem risks but also as a flexible tool to support business priorities such as expansion, while also managing risk and volatility.

• 60% of insurers expect to increase their use of facultative reinsurance over the next two years, compared with just 13% who plan to buy less, highlighting its growing importance across the market cycle.
• 82% saw facultative 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 highlights growing concern around emerging risks, including geopolitical tensions, cyber threats and climate-related exposures, which could begin to alter the current market dynamics.

• 57% cited geopolitics among the emerging risks they are most concerned about, up from 52%, while 54% said cyber, up from 24%, and 40% climate, up from 30%.
  
  

Garret Gaughan, Global Head of Direct and Facultative at Willis said: "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 organisations navigate uncertain times.”

The survey report can be downloaded here.

About the survey

The survey was conducted between February and March 2026 and included 380 senior decision makers from leading insurance companies, including C-suite executives, vice presidents, and heads of property and casualty (P&C). Company size was distributed as follows: 47% with GWP of $1 billion-$5 billion, 35% with GWP of $5 billion-$10 billion, and 19% with GWP of $10 billion or more.

About WTW

At WTW (NASDAQ: WTW), we provide data-driven, insight-led solutions in the areas of people, risk and capital. Leveraging the global view and local expertise of our colleagues serving 140 countries and markets, we help organizations sharpen their strategy, enhance organizational resilience, motivate their workforce and maximize performance.

Working shoulder to shoulder with our clients, we uncover opportunities for sustainable success—and provide perspective that moves you. Learn more at wtwco.com.

Media Contacts
Jo Barrett
Jo.Barrett@wtwco.com

Lauren David
Lauren.David@wtwco.com