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Insurance companies can price that risk. The problem is of the “fuck around and find out” variety. Florida is creating a lot of new, hard to price risks. Risk
by Spooky23 3y ago
Insurance companies can price that risk.
The problem is of the “fuck around and find out” variety. Florida is creating a lot of new, hard to price risks. Risk managers hate unknown probability, high impact events.
How many oceanfront high rises built of reinforced concrete are potential at risk of catastrophic failure due to poor regulatory environment?
How will climate change and various environmental risks in Florida impact risk?
On the car side, how many uninsured accidents will take place due to the crackdown on undocumented or under documented drivers?
On the liability side, what kind of crazy torts will result from the weird crackdowns on teachers and doctors?
- thenerdhead 3y agoThey can't price that risk. That's the whole problem of why they are "pulling out". To be able to do that in the future as there are regulations. Nation-wide insurance companies use risk pooling. They create funds for things like hurricanes that come every 3 years. And they have reinsurance for catastrophic losses. While it is a simplification, seems like greed to me and serving shareholders, not people who actually need it in a time of need.