How are insurance companies going to afford to pay for the Sandy damage?

[The One and Only Mo]

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?

[Tag-MehirTzedek]

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.

[The One and Only Mo]

Its called printing.

Even at the expense of retarded levels of inflation?

[Tag-MehirTzedek]

Even at the expense of retarded levels of inflation?

 I said what they will likely do, not what is the correct solution.

[muman613]

The Gangsta Money be hoppin..

[Zelhar]

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.

[Tag-MehirTzedek]

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).

[The One and Only Mo]

interesting

[Zelhar]

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.