We all know this guy (or girl). The one who can eat anything. Usually the skinny one. Everyone else has pushed back from the table, and this one person is going back for another helping.

How on earth does this relate to life insurance? We're talking carriers and capacity this week, and while some of our carriers push away from the table early, there are some that we can count on to finish that last plateful almost every time. If you are writing a really big case, or seeking more coverage for that really high net worth client, being able to manage this process is going to make or break you.

A couple definitions before we get ahead of ourselves:

• Retention - The amount of coverage the writing carrier actually keeps on their books
• Autobind - An amount the writing carrier can commit their reinsurers to without having to ask permission
• Jumbo Limit - A total line limit (all in force coverage) carriers have to stay under, along with the autobind limit, before they need to have the reinsurer review the file
• Facultative Reinsurance - Having a reinsurer review a risk prior to making an underwriting decision. This happens when the case exceeds the Autobind or Jumbo Limits. This can also occur if there is a unique risk that makes the writing carrier a bit queasy.

Great, nice trivia. Thanks. What's the point? Bottom line is that the higher up the ladder you go from retention all the way to facultative the more challenging your case can become to manage. Why? A few reasons. Less flexibility in underwriting is a big one. Another is that when a case goes facultative any offer the writing carrier may have made prior to heading to reinsurance is probably off the table (There are exceptions to this, and knowing how each carrier views this is critical in this space!).

Perhaps the most difficult issue is the informal underwriting process. If a large case is out to multiple carriers and they all start to ping their reinsurers for an opinion, the reinsurance market can start to feel like a very small place. Poorly managed, this can create a "false" limit on the amount of reinsurance available and ultimately limit the amount of coverage we can find for a client. On the other side of that coin, however, is when it is managed correctly, and the coverage just seems to slot into place.

Some of our carriers are truly expert in this arena. First, they can take down a huge chunk of the risk themselves via a high Retention and Autobind Limit. Then they jump in and really manage the reinsurance market with us, so that we can ultimately achieve the total line of coverage we need. One of our carriers is so good at this that they can construct "super pools" that can take down risks as large as $150 mil. Even for term insurance!

The moral of the story is that we know which carriers are the skinny guys that can help you clean the plate! If you need to find more coverage for an existing client, give me a call so we can show you how its done!