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> they care about the extremes too of course, since they wouldn't want a bunch of payouts at the same time Isn’t that pretty much handled by reinsurance?
by lclarkmichalek 5y ago
> they care about the extremes too of course, since they wouldn't want a bunch of payouts at the same time
Isn’t that pretty much handled by reinsurance?
- lordnacho 5y agoYep, there's a whole market in insurance risk where it can be sliced and diced and traded, much like most financial risks.
- occz 5y agoThat's correct. As an insurance company you buy reinsurance to insure yourself from catastrophic outcomes (i.e too many claims for your reserves to handle).