Here is a classic example of corporate fascism. the govenrment seizes money from the people and gives it to a selected private consortium. Is this a great system or what?
Charles – do you even know how reinsurance works? The NFIP is simply using a risk management technique called risk transfer.
Depending upon the premium charged for the reinsurance, it may be appropriate and protect the NFIP. The limits transferred seem low, in my opinion and the attachment points seem a little strange, too.
I’m guessing the actuaries for the reinsurers and the government found some reasonable balance based on the historical trends and trigger points. My money is on the reinsurance actuaries being better equipped to make that judgment.
Of course that is what sticks out for you, Agent. You only focus on problems, not solutions. While this is a small step, it is a step in the right direction.
Do these figures seem correct? $1 million seems awfully small to transfer. Is that per policy/per occurrence??? Or is that a typo and they meant $1 billion??? If it’s only $1 million, those must be for larger commercial risks, per policy covers?
At first I thought this was a misprint. My math logic may be way off, but at $250K max structure pay out by NFIP, the reinsurers will pay for 4 houses.??? Private and/or mandatory flood insurance would solve a lot of these issues.
$1 million in coverage? I insure single homes for more than that and the NFIP needed multiple insurance companies for this tiny amount of reinsurance? What’s even the point in this??
God help us!
Here is a classic example of corporate fascism. the govenrment seizes money from the people and gives it to a selected private consortium. Is this a great system or what?
What on earth does corporate fascism mean? Or are you just using it to sound cool?
And how does the govt seize flood insurance money? Yes it’s required by mortgage lenders, but people don’t have to buy in flood prone areas.
And who’s giving money away to “selected private consortium[s]”? So the govt can’t engage in contracts with non govt entities?
I’m so confused by this comment.
Charles – do you even know how reinsurance works? The NFIP is simply using a risk management technique called risk transfer.
Depending upon the premium charged for the reinsurance, it may be appropriate and protect the NFIP. The limits transferred seem low, in my opinion and the attachment points seem a little strange, too.
I’m guessing the actuaries for the reinsurers and the government found some reasonable balance based on the historical trends and trigger points. My money is on the reinsurance actuaries being better equipped to make that judgment.
Integrity, the figure that sticks out for me is that NFIP owes the Treasury $23 Billion with a B.
Of course that is what sticks out for you, Agent. You only focus on problems, not solutions. While this is a small step, it is a step in the right direction.
Do these figures seem correct? $1 million seems awfully small to transfer. Is that per policy/per occurrence??? Or is that a typo and they meant $1 billion??? If it’s only $1 million, those must be for larger commercial risks, per policy covers?
There has to be typos in this article. The numbers don’t make sense. IJ – are you listening? Please correct the article.
At first I thought this was a misprint. My math logic may be way off, but at $250K max structure pay out by NFIP, the reinsurers will pay for 4 houses.??? Private and/or mandatory flood insurance would solve a lot of these issues.
$1 million in coverage? I insure single homes for more than that and the NFIP needed multiple insurance companies for this tiny amount of reinsurance? What’s even the point in this??
Erm, because with a million here and a million there, soon you are talking real money. Each and every loss don’t forget.
There is another typo in the article. Munich Re America’s Strategic Product Manager is Tim Brockett, not Tim Brickett.