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Sadly it might cost Berkshire even less to just reinsure against the risk.
by realtalk_sp 6y ago
Sadly it might cost Berkshire even less to just reinsure against the risk.
- phonon 6y agoBerkshire is the 5th largest reinsurer in the world[1], so not likely to happen... [1]https://www.insurancebusinessmag.com/us/news/breaking-news/these-are-the-top-10-reinsurance-companies-in-the-world-189205.aspx https://www.insurancebusinessmag.com/us/news/breaking-news/t...
- realtalk_sp 6y agoNot sure what you're trying to imply. Reinsurers do in fact reinsure against their own risk. It's turtles all the way down.
- phonon 6y agoYes, retrocession agreements. I know. Berkshire Hathaway is not usually (ever?) on the ceding end of those arrangements.
- pilsetnieks 6y agoI'm suddenly tempted to write a not-quite-serious novel about a time period up to and including a post-apocalyptic dystopia that occurred simply because almost all emergency measures in the world were replaced by insurance policies. In the end people subsist on irradiated rats and mutant vegetables but they're doing great because each of them are owed millions of pounds by Lloyd's of London which may or may not exist anymore.
- mrslave 6y agoSomething about this reminds me of Snow Crash.
- BurningFrog 6y agoInsurance doesn't work when everything breaks at the same time.