S&P Global Ratings has said that global reinsurers are parting ways on natural catastrophe risk, with half growing their exposure in this area over the course of the year.
Meanwhile, the S&P said that the remainder are taking a more cautious and defensive stance by reducing their exposure.
The firm said that this divergence in strategy reflects the growing cost of natural catastrophes: they have topped loss expectations in the past five years despite increases in reinsurers’ budget.
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