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Pakistan's chief insurance regulator has been urging the Pakistan Reinsurance Co. Ltd., the country's lone reinsurer, to write insurance policies covering terrorism, though the reinsurer is reluctant to do so, reports Pakistani newspaper Dawn.
The regulator is concerned that a lack of local reinsurers is benefiting foreign reinsurers, who are taking away more than 2 billion Pakistani rupees ($20.4 million) in reinsurance premiums.
Industry sources told Dawn that Hannover Re is grabbing the major share.
The regulator has already been calling on insurers to form a terrorism insurance pool.
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