S&P Warns of Reinsurer Protections as Catastrophe Risks Escalate

As natural catastrophes become more frequent and destructive, a key backstop intended to help cover losses has gotten harder to access.

The reinsurance industry, which exists to help primary insurers cope with losses when disaster hits, has taken significant steps to shield itself against the financial fallout of storms, floods and other severe weather events, according to S&P Global Ratings.

Over the past half decade, the top 19 global reinsurers have more than halved their exposure to insured catastrophe losses, and will likely continue to bear a smaller burden than they have historically, according to Simon Ashworth, chief analytical ...