The Fac Files - 3 ½ Benefits of a DIRECT Fac Reinsurer - Pizza Edition
Facultative can be an unfamiliar process, which many underwriters aren’t sure how to utilize. As a result, some might think they need the “expertise” of a Fac broker to guide them. The truth is that Fac is a much less complicated process than people fear. In fact, it’s so easy, it’s like ordering a pizza. Add to that the following 3 ½ benefits and you’ll see that using a DIRECT market for Fac is both easy and valuable.
1) Faster Turnaround: When you order a pizza, you don’t call “Jimmy the pizza broker,” expecting him to take your order, call the Pizza Palace, and then call you back to ask if you wanted a large or a medium pie, and finally pass the word back to the Pizza Palace, etc. You know how you like your pizza; Jimmy just adds process and time to the order...and the game starts in 30 minutes! When risks need Fac, they need it now! Direct Fac markets provide a much faster turnaround for you precisely when you need it most.
2) Test the Water: We get many calls from people who may not have a formal submission yet, but want to discuss a prospect they have on the line. You don’t want to waste your valuable time on a prospect that would be D.O.A. without a little Facultative support to help mitigate a slice of the severity exposure. A direct Fac market can facilitate this vetting process on a 10-minute phone call in the same way that you can save everyone a lot of wasted effort by making a quick call to the pizza place, before placing your order, to ensure they offer gluten-free options.
3) Underwriting Knowledge: Often, the accounts we see have interesting, unique, or complex exposures. Direct Fac markets are better positioned to share their experience and knowledge of these quirky items with you, unfiltered by an indirect and imperfect chain of communications. When you have a risk involved in uranium mining, or the production of glucosamine, or volatile chemicals, you want advice and guidance as quickly and correctly as possible. For the record, each one of these was a real topic we were asked about and provided detailed research on the relevant liability concerns within a day. (Also, I have no pizza metaphor for uranium mining…)
3 ½) We don’t bite: Underwriters who don’t place much Fac might be hesitant about the process and not know where to start. You don’t need to know the whole menu when you order your pizza. If the waitress needs to know whether you want garlic bread or what drink you’d like, she’ll ask you with a smile and bring you your food.
You know your business like you know your pizza. The next time you need a fast reply, a quick litmus test, or advice on a complex underwriting issue, start with what you know, and order your pizza DIRECT.