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General Category => General Discussion => Topic started by: The One and Only Mo on October 31, 2012, 11:25:03 PM

Title: How are insurance companies going to afford to pay for the Sandy damage?
Post by: The One and Only Mo on October 31, 2012, 11:25:03 PM: I know that there are billions of dollars in damage, but I can't figure out where all of that money is going to come from. Also, are everybody's premiums going to go up like crazy?
Title: Re: How are insurance companies going to afford to pay for the Sandy damage?
Post by: Tag-MehirTzedek on October 31, 2012, 11:39:27 PM: Quote from: The One and Only Mo on October 31, 2012, 11:25:03 PM
I know that there are billions of dollars in damage, but I can't figure out where all of that money is going to come from. Also, are everybody's premiums going to go up like crazy?

Its called printing.
Title: Re: How are insurance companies going to afford to pay for the Sandy damage?
Post by: The One and Only Mo on October 31, 2012, 11:51:50 PM: Quote from: Tag-MehirTzedek on October 31, 2012, 11:39:27 PM
Its called printing.
Even at the expense of retarded levels of inflation?
Title: Re: How are insurance companies going to afford to pay for the Sandy damage?
Post by: Tag-MehirTzedek on October 31, 2012, 11:55:54 PM: Quote from: The One and Only Mo on October 31, 2012, 11:51:50 PM
Even at the expense of retarded levels of inflation?

I said what they will likely do, not what is the correct solution.
Title: Re: How are insurance companies going to afford to pay for the Sandy damage?
Post by: muman613 on November 01, 2012, 12:36:00 AM: The Gangsta Money be hoppin..

(http://hiphop.hypeeater.com/wp-content/uploads/HLIC/84fbab6410dc0e195051217aaca287de.jpg)

(http://i153.photobucket.com/albums/s235/revmyspace2/graphics/other/pimp/0021643097c355585c42a03365c1a373d83.jpg)

(http://page.crystalcomments.com/6/29184.jpg)
Title: Re: How are insurance companies going to afford to pay for the Sandy damage?
Post by: Zelhar on November 01, 2012, 04:50:48 AM: The liabilities are spread across many insurers. Also, most original insurers limit their exposure by buying reinsurance. The Reinsurers have their own way of limiting their risk like selling catastrophe bonds and sharing the risk with other peers. I don't think this storm is going to trigger any significant insurer default.
Title: Re: How are insurance companies going to afford to pay for the Sandy damage?
Post by: Tag-MehirTzedek on November 01, 2012, 09:44:47 AM: Quote from: Zelhar on November 01, 2012, 04:50:48 AM
The liabilities are spread across many insurers. Also, most original insurers limit their exposure by buying reinsurance. The Reinsurers have their own way of limiting their risk like selling catastrophe bonds and sharing the risk with other peers. I don't think this storm is going to trigger any significant insurer default.

Yepp that is called "Risk Management" and that is the way they do it (by spreading the risk), BUT their still is the component of FEMA which is from the government and there it is likely that they will print (In my opinion).
Title: Re: How are insurance companies going to afford to pay for the Sandy damage?
Post by: The One and Only Mo on November 01, 2012, 11:22:31 AM: interesting
Title: Re: How are insurance companies going to afford to pay for the Sandy damage?
Post by: Zelhar on November 01, 2012, 11:58:29 AM: Quote from: Tag-MehirTzedek on November 01, 2012, 09:44:47 AM
Yepp that is called "Risk Management" and that is the way they do it (by spreading the risk), BUT their still is the component of FEMA which is from the government and there it is likely that they will print (In my opinion).
Yes indeed Obama is running on credit like a compulsive gambler.