Some captives also use reinsurance
to buy down deductibles imposed on
them by direct markets where they
see those deductibles as unrealistic or
potentially a threat to the balance sheet,
and in doing so create an insurance
cost where before there was only loss
possible. Reinsurers will sometimes
look at “stop loss” reinsurance on some
of these captive activities, limiting the
“sideways” exposures.
Reinsur