Someday, perhaps not in our lifetime, we’ll start to see insurers putting up reserves which are something close to adequate. Fitch was right last year, reserves are undoubtedly under funded by well over 30 billion dollars. Oh sure, there will be those who say, no we’re not, obviously, all of these hits on prior years have come from claims that no one knew anything about – right! Or, the legal environment has – what?
You really have to wonder, when the industry posts their so called “yellow perils” if anyone actually understands what they contain. Certainly the analysts don’t, and it’s a sure bet, that regulators don’t have a clue. If they did, we wouldn’t have seen the loss of the number of “household” name insurers who have disappeared, not to mention the multiple billions in these so called strengthening of reserves.
30 BILLION?… you’re way off…couple of years ago Alice Shroeder/Merrill Lynch said it was $100 bill for environmental alone…other P & C estimates talk of non enviro of 30 to 45 bill arena…. for an industry with a little over $300 bill in surplus one can make the case it’s almost too late to avert a catstrophic failure…but why bother?, everyday all we’re trying to do is write a few accounts, thats what we get paid for…surely anyone with any understanding of mathamatical addition and subtraction can see the macro numbers look apalling…but apparently not! even though some people did work out we cant afford a $100 billion terrorist loss so we’d like the Govt to pick up that one…but an equake or hurricane that reached its potential could do a lot more than that….
Flashman, perhaps, but Fitch last year indicated in mid year that the reserve adequatecy was off by 70 billion, which they later revised at some 31 to 32 billion. But then again, a billion here and abillion there, and pretty soon you’re talking about deal money, from an old Senator.
Someday, perhaps not in our lifetime, we’ll start to see insurers putting up reserves which are something close to adequate. Fitch was right last year, reserves are undoubtedly under funded by well over 30 billion dollars. Oh sure, there will be those who say, no we’re not, obviously, all of these hits on prior years have come from claims that no one knew anything about – right! Or, the legal environment has – what?
You really have to wonder, when the industry posts their so called “yellow perils” if anyone actually understands what they contain. Certainly the analysts don’t, and it’s a sure bet, that regulators don’t have a clue. If they did, we wouldn’t have seen the loss of the number of “household” name insurers who have disappeared, not to mention the multiple billions in these so called strengthening of reserves.
30 BILLION?… you’re way off…couple of years ago Alice Shroeder/Merrill Lynch said it was $100 bill for environmental alone…other P & C estimates talk of non enviro of 30 to 45 bill arena…. for an industry with a little over $300 bill in surplus one can make the case it’s almost too late to avert a catstrophic failure…but why bother?, everyday all we’re trying to do is write a few accounts, thats what we get paid for…surely anyone with any understanding of mathamatical addition and subtraction can see the macro numbers look apalling…but apparently not! even though some people did work out we cant afford a $100 billion terrorist loss so we’d like the Govt to pick up that one…but an equake or hurricane that reached its potential could do a lot more than that….
Flashman, perhaps, but Fitch last year indicated in mid year that the reserve adequatecy was off by 70 billion, which they later revised at some 31 to 32 billion. But then again, a billion here and abillion there, and pretty soon you’re talking about deal money, from an old Senator.
Pete