<Li> Reinsurers may operate under weaker regulation than their clients . This enables them to use less capital to cover any risk, and to make less conservative assumptions when valuing the risk . </Li> <Li> Reinsurers may operate under a more favourable tax regime than their clients . </Li> <Li> Reinsurers will often have better access to underwriting expertise and to claims experience data, enabling them to assess the risk more accurately and reduce the need for contingency margins in pricing the risk </Li> <Li> Even if the regulatory standards are the same, the reinsurer may be able to hold smaller actuarial reserves than the cedant if it thinks the premiums charged by the cedant are excessively conservative . </Li>

Under what circumstances may an insurer write insurance in excess of its retention limits