There is a bit of a rattle going on throughout the insurance industry about the cost of reinsurance in New Zealand following the Christchurch earthquakes and the effect this is having on premiums.
What’s reinsurance and how does it work? Simply, it can be considered insurance for insurance companies. By spreading the risk, an individual insurance company can take on clients whose cover would be too much of a burden for a single insurer. The liability is shared with the reinsurer. [Read more...]