Growth for primary writers is extremely challenging in the current economic environment. Organic growth due to higher incomes has slowed and, in some cases, is actually negative as higher paid workforces have been declining in number. Also, economic conditions aren’t ideal for generating new insured policies. Against this need for growth, experience for most plans has been unexpectedly good. These two factors have led issuers to consider or implement higher retentions, driving marked reductions in ceded reinsurance. In this environment, reinsurers have to compete strongly to win business.

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