3 ms·
> Again probability cannot help when an earthquake demolishes the entire state and I have to write a check for every damn house I Insure. I actually need to kee
by akerl_ 3y ago
> Again probability cannot help when an earthquake demolishes the entire state and I have to write a check for every damn house I Insure. I actually need to keep in the bank amount equal to the price of each house
I’m not sure what you mean. Insurance companies don’t hold liquid capital sufficient to cover 100% of their active policies paying out simultaneously.
- jbboehr 3y agoSee also: Reinsurance > Reinsurance is insurance that an insurance company purchases from another insurance company to insulate itself (at least in part) from the risk of a major claims event. https://en.wikipedia.org/wiki/Reinsurance https://en.wikipedia.org/wiki/Reinsurance