Facultative reinsurance can be in the form of either pro rata or excess of loss reinsurance. Pro rata or proportional reinsurance provides a specified proportional division of premiums and losses between the primary insurer (ceding company) and the reinsurer. With excess of loss reinsurance, the reinsurer responds to a loss only when the loss exceeds the retention of the primary insurer.

Aon Global provides its clients dynamic and creative new ways to utilise various reinsurance products in achieving both short and long-term business goals.

Facultative Reinsurance for the Indian market is mainly sought for large risks, liability business and other non conventional kind of business where local capacity is not sufficient.