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How could socio political events have an impact on reinsurance?
Wiki User
∙ 16y ago
Q 1.1 - Answer
Wiki User
∙ 16y ago
Socio-political events can impact reinsurance through changes in regulations, such as new laws affecting coverage requirements or capital requirements for reinsurers. Political instability or social unrest in a region can also increase risks for insurers and reinsurers operating in that area, leading to higher premiums or reduced capacity. Additionally, changes in government policy around issues like climate change or infrastructure investment can influence the types and frequency of catastrophic events that reinsurers cover.
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