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An insurer typically buys reinsurance cover at 10% and now will be required to do so at maybe 30%, so if writing 500m in premium, that cost will go to 50m to 150m which directly covers the cost of paying for catastrophic loss. This will be a underiting loss for anyone. This will need to sit on rates unfortunatey. Its easy to say that invesetmnets and profits will cover it, however commercial deals are only struck through health of the company so if operating lower than 100% wont be able to raise capital to invest, access to cash, loans etc. so if the DR rate remains, the only way to drop rates is to have large entities, or un-privatise insurance and have government subsidy.