When can a company write insurance in excess of retention limits?

A company can write insurance in excess of retention limits when it has obtained reinsurance coverage to manage its risk exposure beyond those limits. This allows the insurer to underwrite larger policies by transferring a portion of the risk to reinsurers. Additionally, regulatory requirements and the company's capital position may influence its ability to write such policies. Ultimately, the decision to exceed retention limits should align with the company’s risk management strategy and financial capabilities.