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Higher reinsurance rates could force insurers to tap ILS sector


U.S.-based ratings agency A.M. Best Co. Inc. said that insurers are likely to increase their use of insurance-linked securities and catastrophe bonds after reinsurers increased rates up to 20% at recent renewals, The ratings agency said that a rise in reinsurance costs is also likely to reduce the insurers' potential earnings and hamper operating performance.

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