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SA’s short-term insurers are bracing for higher reinsurance costs, as natural catastrophes are expected to hit the country more frequently.

The nature of reinsurance — reinsurers are the final takers of risk in the insurance chain — means global risk events eventually push up the reinsurance price. This is especially so for the large German and Swiss reinsurers, which have felt the impact of recent floods in both KwaZulu-Natal (KZN) and Australia. ..

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