3 ms·
If you chat with the right insurance agent, that might be possible. While it wouldn't go by the name 'reinsurance', look for a policy with a large deductible an
by ISL 10y ago
If you chat with the right insurance agent, that might be possible. While it wouldn't go by the name 'reinsurance', look for a policy with a large deductible and a large maximum payout.
- eru 10y agoThey have programs like these for health care in the US. Can be quite cheap, if you can stomach paying the first 6k USD (per year or so?) yourself.
- danieltillett 10y agoI am in Australia so I am not concerned about health insurance - more things like house, disability and car insurance. I can afford to carry quite a bit of risk, it is just the long tail that is an issue.
- eru 10y agoFor disability insurance, I assume a high excess would translate into a longer time before the insurance kicks in? For car insurance, isn't an excess you can choose a standard feature? (Some insurance companies give you a no-claims rebase, which is the same as a high excess---only shifted in time.) I don't know about house insurance. What does house insurance insure against?
- danieltillett 10y agoI have to say I have not looked into this in great depth, but this might be a great idea for a startup.
- Someone 10y agoI recently did for a sports club. It wasn't an option. Thing is, insurers live by the law of large numbers (https://en.wikipedia.org/wiki/Law_of_large_numbers https://en.wikipedia.org/wiki/Law_of_large_numbers). Cutting away the high risk, low payout parts of the insurance decreases the number of payouts significantly. That does mean variance in payouts goes up. So, insurers will either need to find lots of new customers to get N up again, or relatively high amounts of capital to survive those high payouts. If they think they cannot find those customers, they need more capital. To finance that, they need more income, which means charging you more, which means fewer customers, which means charging you even more, etc. I'm sure you get that insurance through Lloyd's, but it wouldn't be cheap.
- danieltillett 10y agoIf reinsurance is available to insurance companies there is nothing in theory stopping it being available to individuals. This sounds like a market that is ripe for disintermediation.
- morgante 10y agoI'm fairly certain there are policies designed for high net worth individuals who can cover the first million in losses themselves but don't want to be exposed to long tail risk. I've definitely heard people talking about it, particularly for real estate.