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A report by U.S.-based ratings agency A.M. Best Co. Inc. said that the pressure on reinsurance rates is unsustainable over the long-term, with changes in buying and existing market dynamics likely to lead to a change in the reinsurance cycle, Artemis.bm reports. "Although primary insurers are trying to take advantage of soft market conditions, in the long-term the pressure on rates is unsustainable," the rating agency said. Reinsurance rates are expected to continue to decline at future renewals but only by very marginal amounts.
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