What happens in the economy is of paramount importance to the insurance industry. In some cases, financial crises such as the Great Depression could turn out to be much more costly for insurers and reinsurers than even some of the worst insured catastrophes. On the other hand investment returns could sometimes turn out to be much better than the technical results of the core business. Monetary issues have also kept the industry at least as busy with floating exchange rates and changing interest rates.

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