| They wish to be reinsured by the states because of the risk for them to suffer heavy financial losses. |
| Like many retail insurers, they offer a custom package direct to buyers which is reinsured through a larger firm. |
| They bought cover, often through bulk contracts off the big insurance giants, who in turn reinsured their risk elsewhere. |
| Effectively, the insurer and reinsured have agreed that such information is immaterial. |
| They could be in for nasty surprises because of direct exposure or the miscalculation of the quantities that they have reinsured, he said. |
| It is difficult to see how such cover can work at all if a fronting company alone is the reinsured. |
