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Most insurance companies have their insurance policies underwritten by a reinsurer: https://en.wikipedia.org/wiki/Reinsurance https://en.wikipedia.org/wiki/Rei
by ig1 13y ago
Most insurance companies have their insurance policies underwritten by a reinsurer:
https://en.wikipedia.org/wiki/Reinsurance https://en.wikipedia.org/wiki/Reinsurance
- minimax 13y agoYou're right. I looked a little more on their site and found: The policies are reinsured by Swiss RE Corporate Solutions Ltd which also has an A.M. Best rating of "A+" (Superior). It looks like Swiss Re has a pretty significant global crop insurance business. http://www.swissre.com/reinsurance/insurers/agriculture/ http://www.swissre.com/reinsurance/insurers/agriculture/ edit: I'm still a little confused though. What is the point of developing their own sophisticated risk model when the price of the policy will ultimately depend on Swiss Re's risk model?
- d2vid 13y agoFormer Climate employee here. Swiss Re reinsures Climate Corp, not any individual policy. So Climate Corp sets the price for each policy and pays out each claim. Swiss Re pays out to Climate Corp if in aggregate all the claims are greater than the price charged. Does that make sense?
- minimax 13y agoIt does. Thanks!