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(From Reinsurance)
Byline: Vic Wyman.
Ah yes, you remember that idea of cedants paying more the higher the rating of the reinsurer by rating agencies. The idea, often suggested wistfully by highly-rated reinsurers themselves, has been around a long time but has never taken root.
However, the hour may have come, suggests Rick Hudson, the group risk director of the UK-based insurer Royal & SunAlliance and president of the UK's Chartered Insurance Institute.
A rates-for-ratings approach would be impossible with syndicated Lloyd's slips which are subscribed to by differently-rated companies. However, Mr Hudson thinks the idea might fly ...