Insurance
RBNZ ponders re-insurance clampdown
Tuesday 12th of March 2013
Some insurance companies, such as Partners Life, are backed by re-insurance. When a policy is sold, the re-insurer pays a proportion of the associated sales and issue costs. In return, they receive that same proportion of the premiums, less an expense allowance, and pay the same proportion of claims.
Re-insurers use their substantial capital bases to fund insurers who would otherwise hav...
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