Brokers Respond To Re Security Concerns

Cedents worried that their reinsurers could start slip-sliding down the rating agency downgrade slopes can rest assured that their reinsurance brokers are arming themselves with tools to help stop their clients from heading onto the wrong trails.

Reinsurance buyers “are becoming very focused on the issue of reinsurance credit risk–counterparty risk,” said Christopher Klein, head of counterparty risk for Benfield Group, noting that reinsurer security was the second most important issue on buyers minds in the Jan. 1 renewal period.

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