Don’t ignore that fact that a large portion of cash flow out of an insurance company is for the adjustment and payment of claims. Consider this, a large storm sweeps through the midwest, severely damaging 10,000 residential and commercial structures. At an average per claim value of $50,000, thats a total of $500,000,000. Add in the cost to adjust those claims and you can easily see how a single event can wreak havoc on a highly exposed insurer’s balance sheet.
How does this happen? Seriously?
Greedy bastards.
Based on the crazy things they’ve done in the past, I’ve always thought Zurich had more money than they did sense, I guess that’s not correct now?
Sounds all to familiar
Don’t ignore that fact that a large portion of cash flow out of an insurance company is for the adjustment and payment of claims. Consider this, a large storm sweeps through the midwest, severely damaging 10,000 residential and commercial structures. At an average per claim value of $50,000, thats a total of $500,000,000. Add in the cost to adjust those claims and you can easily see how a single event can wreak havoc on a highly exposed insurer’s balance sheet.
Ever heard of reinsurance?