SSs can also help insurance companies in other ways, and one of these is to give
them greater opportunity to exploit their comparative advantages. Some firms will
typically have a comparative advantage in originating business, and others in bearing
the resulting exposures. For example, a firm might be particularly good at originating
a specific line of business, but if it exploits this comparative advantage, it is likely to
end up with more of that business than it is comfortable holding. On the other hand,
if it restricts the amount of business it generates to suit its ability to bear the exposure,
then it is failing to take full advantage of its ability to generate that business. A firm
that is particularly well suited to bear the risks entailed by the same line of business
may have the opposite problem, and be unable to generate the volume of business
it desires. An SS would then provide an ideal way for both firms to alleviate these
problems and play to their relative strengths.