Insurance is commonly treated as risk transfer.
In practice, it introduces a new exposure:
- counterparty risk embedded in insurance recoverables.
As loss severity increases, dependence on insurer capital strength, reinsurance performance, and collateral structures becomes critical.
For corporates using captives, fronting and layered reinsurance, this is not theoretical.
It is a balance-sheet reality.
In our latest “The Business of Resilience”, we explore how this exposure forms and why it is increasing across global programmes.
Read the full article here:
https://lnkd.in/eNBP6-Xf