In the current softening market environment where reinsurance capital is abundantly available, primary carriers are benefiting from a greater diversity of protection options, across traditional reinsurance, insurance-linked securities and a growing availability of aggregate covers, rating agency KBRA has explained.
KBRA sees this wider range of risk transfer options as “a strength” for primary insurance carriers.
But the rating agency also notes that at this stage of the market cycle, even while protection may be cheaper and more available, carriers should not let their underwriting discipline loosen.
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