“Special reserves, which are considered a capital buffer to cover large losses, have also been significantly reduced by the release of reserves that offset pandemic insurance claims,” Lee said. “The reduced special reserve buffer led to an increase in the purchase of catastrophe reinsurance among the upper classes in past renewal periods.
“However, some insurers increased the retention of their catastrophe reinsurance programs due to rising reinsurance costs in difficult market conditions, which could lead to greater volatility in their net income.”
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2024-04-03 18:39:54
www.insurancebusinessmag.com
