Insurers say they need higher premiums from FL homeowners to offset mounting losses from hurricane claims, severe weather events and resulting increases in the cost of reinsurance.

Insurers say they need higher premiums from FL homeowners to offset mounting losses from hurricane claims, severe weather events and resulting increases in the cost of reinsurance. / South Florida Sun-Sentinel

When an insurance company can't cover all of its claims, it actually has its own insurance. This is called "reinsurance." How does that work and why do reinsurers look at their risk pool differently than say home or auto insurers?

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Tags: insurance  The Indicator  reinsurance