P&C insurers weigh using reinsurance savings for capital or taking more risk - KBRA

Falling reinsurance costs present P&C insurers with a choice: use the savings to strengthen balance sheets or risk increasing exposure and retained risk, KBRA said in a report. The property cat reinsurance market has shifted in favor of cedants, with prices falling significantly, but the benefit of lower costs hinges on insurers' strategic decisions, such as retaining savings to build capital or purchasing additional protection.