LONDON -Saturday, January 28th 2017 [ ME NewsWire ]
(BUSINESS WIRE)-- Insurers in Gulf Cooperation Council (GCC) markets are coming under pressure to increase retention levels for high-rise buildings to demonstrate their alignment of interests with those of reinsurers, according to new research by A.M. Best.
In a new Best’s Briefing, titled “GCC Insurers Must Monitor Impact of Changing Terms for High-Rise Property Insurance,” A.M. Best discusses how property insurance has been a major issue given the frequency of losses experienced over the past decade. For many insurers and reinsurers, it is an underperforming business segment, and in many cases loss-making.
Global reinsurers have introduced stricter terms and conditions over the past five years, including event limits and tighter policy wordings following regional instability. According to the briefing, during the recent renewal period, some of the major reinsurers stipulated local insurers must retain a minimum of 30% of risks fo
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