Reinsurers invest in tech to support catastrophe insurance

U.S.-based S&P Global Ratings Inc. said that Chinese reinsurers are investing in technology and systems to support catastrophe coverage, Asia Insurance Review reported. "The ongoing expansion into non-motor property/casualty business offers new growth avenues but will expose Chinese reinsurers to potential volatility, given the rising uncertainties associated with catastrophe exposures, insufficient underwriting expertise, and evolving risk-management frameworks," an analyst at the rating agency said. "By our estimates, the reinsurance cession rates for China's P&C sector will stabilize at around 9% by 2020."

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