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Article: Financial meltdown may trigger reinsurance rate increases; Investment losses raise some concerns over capital needs.(Spotlight: Reinsurance: Trends and Issues)
- Article from:
- Business Insurance
- Article date:
- October 27, 2008
- Author:
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Byline: JUDY GREENWALD
Reinsurance officials and others say the most immediate effect of the financial market meltdown has been on reinsurers' investment income.
This may hasten a turn in overall market pricing and change how reinsurers operate, some observers say.
Should there be a major catastrophe, reinsurers seeking additional capital may have a difficult time finding it, many observers say.
"I don't think (the financial market turmoil is) going to have a major, overall lasting effect'' on reinsurers in terms of business or risk appetite, said Steve McElhiney, president of Dallas-based reinsurance intermediary EWI Inc.
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