The Role of reinsurance in catastrophe risk funding
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<subfield code="a">Insurers can view the benefit of catastrophe reinsurance from two closely related perspectives, each with its own related language. Historically, reinsurance was viewed simply as a mechanism to help smooth claims from "bad" years across all years; the reinsurance premium paid each year was seen as paying for the significant recorveries that were received in a bad year (plus a reasonable contingency margin for the reinsurer)</subfield>
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