The principles behind FacEasy are quite simple - enable the movement of summarized data relating to a facultative life risk by a ceding company to their reinsurers in a timely and secure manner using the internet.

Automatic life reinsurance has evolved over the years, going from simplistic retentions, small bindings and excess of retention reinsurance to complex arrangements involving pools, quota sharing, and significant auto bindings. Although much of this development is related to the continuing sophistication of treaties between reinsurers and ceding companies, they basically stem in large part from the enormous trust between the two parties.

Facultative reinsurance on the other hand, has not really evolved to the same extent. It is still the same basic process developed years ago; the ceding company underwrites a case themselves, they send the complete file to multiple reinsurers who again re-underwrite the same case and render a facultative decision. Often there is no communication between the ceding company and the reinsurer as to the ceding companies original assessment.

In many facultative cases, a reinsurer could make a facultative decision based on certain salient factors, that if summarized effectively, could allow a decision on that same case without the traditional review of actual papers. In fact, much of the information relayed in the traditional process often turns out to be superfluous to the ultimate decision.

Summarized fac, while worthwhile, has not met with much success in efforts in the past. Summarization, if it is to succeed, must be both time and effort efficient. To break away from current paradigms, a summarized system must be: easy to use, quick to complete and rewarded by enhanced service.

In this electronic age, many companies move imaged facultative cases using the power of the internet. While ingenious and seemingly less burdensome, they do little to actually solve the problems relating to the profusion of facultative in the marketplace. In a manner of speaking, these initiatives, while resourceful, simply continue existing, sometimes inefficient work-flow procedures and even tend to create their own potential problems relating to the internet: bandwidth abuse, new forms of electronic storage and even new levels of privacy concerns.

FacEasy.com wants to try to change time worn facultative traditions using the same trust and sophistication reinsurers routinely apply to automatic relationships with their clients.