Opinion: Retro disconnect highlights rising basis risk
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Opinion: Retro disconnect highlights rising basis risk

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One of the most striking outcomes of the 1 January renewal was the disconnect between retro costs and inwards reinsurance price hikes – which is resulting in shifts to the make-up of the retro market.

For the reinsurers that have built their platforms on retro support – such as Lloyd’s syndicates or the few Bermuda/continental reinsurers with much larger gross books than net such as RenRe, Hannover Re or Hiscox – this position becomes...

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