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>“Despite the hefty insured losses, we expect they will remain manageable for the insurance industry as they will involve a large and diversified pool of well c
by Almondsetat 3y ago
>“Despite the hefty insured losses, we expect they will remain manageable for the insurance industry as they will involve a large and diversified pool of well capitalized insurers and reinsurers,” Morningstar said.
Is the insurance business world so scummy that just a couple of billions worth of claims could even remotely be a problem for them?
- mb7733 3y agoAccording to the article, no.
- Almondsetat 3y agoremain manageable != not a problem
- deleted 3y ago[deleted]
- xamolxix 3y agoMoreover, regardless of how large the sum is, when they took the policy they should have known if they could pay it? I'd have thought there's regulations on that.
- thatguy0900 3y agoInsurers will also have insurance themselves to cover extremely large claims
- ninju 3y agoYep...reinsurance is a common practice in the industry 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
- mb7733 3y agoWhat makes you think this is not the case? According to the article this disaster was within the parameters the the insurers planned for, even though it is the biggest of its kind.
- voisin 3y ago> Is the insurance business world so scummy that just a couple of billions worth of claims could even remotely be a problem for them? Welcome to socialism… err… “capitalism”. Privatize profits, socialize losses.
- deleted 3y ago[deleted]