A new Willis survey finds that facultative reinsurance is helping insurers pursue growth in a rapidly softening market, with 60% of insurers expecting to increase their use of it over the next two years against just 13% who plan to buy less. The Facultative Reinsurance Report 2026, published by Willis, a WTW business, and conducted with Coleman Parkes Research, drew responses from 380 senior decision makers at leading insurance companies across North America, Europe, Middle East, APAC and Latin America. More than half, 52%, of insurers identified capital management as a key reason for buying facultative reinsurance, up from 44% in 2024, while 56% said global expansion was among their greatest opportunities in the next two years, up from 39%. 52% named entering new markets and risk areas among their top strategic objectives, up from 45%, and 55% named increasing capacity as a top objective, up from 48%. 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. On emerging risks, 57% cited geopolitics, up from 52%, 54% said cyber, up from 24%, and 40% said climate, up from 30%. Garret Gaughan, Global Head of Direct and Facultative at Willis, said the research shows facultative reinsurance is increasingly being used as a strategic tool to help insurers expand capacity, enter new markets and manage capital efficiently.
Willis Towers Watson PLCWillis's own survey shows 60% of insurers plan to increase facultative reinsurance use, signaling growing demand for its reinsurance broking services.
