3 ms·
I wonder how those rates of return compare to say Georgia and Wyoming. (A state you'd expect to have reasonably similar risk and one where you'd not necessaril
by maxerickson 2y ago
I wonder how those rates of return compare to say Georgia and Wyoming.
(A state you'd expect to have reasonably similar risk and one where you'd not necessarily expect it to be similar)
- bilbo0s 2y agoAverage elevation in Georgia: 600ft Average elevation in Florida: 100ft Georgia coastline: 100 mi non-NOAA Florida coastline: 1350 mi non-NOAA Even when cheating with non-NOAA numbers, Georgia is nowhere near comparable to Florida. Most of the people in your pools in Georgia are not on the coasts, and live at non-dangerous elevations. Whereas in Florida, nearly all of the people in your pools live on the coasts, and at extremely dangerous elevations.
- dmoy 2y agoFor anyone else momentarily confused like me: risk pools (which is evidently a term of art in insurance: https://en.m.wikipedia.org/wiki/Risk_pool https://en.m.wikipedia.org/wiki/Risk_pool) Not swimming pools, which was my first read of above comment, at which point I thought, "well obviously I got something wrong there, time to look at Wikipedia"
- bilbo0s 2y agoSorry. I should have been more clear. Yes. Risk pools. What I was trying to illustrate is that the fundamental model of sharing risk can work in a place like Georgia, whereas in a place like Florida it doesn't.
- maxerickson 2y agoOkay, pick whatever state, but the interesting thing is looking at the rate the industry is pulling out profits at. Are the Florida affiliates 10 times more profitable or 100? And so on.