Risk of Contagion
_"Risk of contagion across various reinsurance arrangement"
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What does 'Risk of Contagion' mean?
Is it something like systemic risks or an event could impact multiple reinsurers?
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_"Risk of contagion across various reinsurance arrangement"
_
What does 'Risk of Contagion' mean?
Is it something like systemic risks or an event could impact multiple reinsurers?
Comments
Yup that's basically what it means. You could have treaties with multiple reinsurers for example and all of them can default at once if you have a massive earthquake. This is a contagion because you wouldn't normally expect them to all default at once but it is something to consider