I am calling attention to the misleading nature of the following statement, which appears in the related article:
\”Aon and other reinsurers sell backup insurance to other insurance companies, spreading risk so that enormous losses from natural catastrophes can be covered.\”
Though most of the readers are fully aware of this, I want to point out that Aon is actually a reinsurance intermediary. Thus they benefit from increasing rates without taking any risk or incurring any losses. Further, as the global leader in reinsurance brokerage and natural catastrophe expertise, Aon benefits from the increasing complexity and volatility of predicting catastrophes, as more primary insurance providers look for risk management solutions.
Rates will go as high as the Florida DOI allows them to. They currently have absolutely no actuarial soundness so anyone who thinks there will be an adjustment based on actual loss experience also believes in Santa Claus and the Tooth Fairy
I am calling attention to the misleading nature of the following statement, which appears in the related article:
\”Aon and other reinsurers sell backup insurance to other insurance companies, spreading risk so that enormous losses from natural catastrophes can be covered.\”
Though most of the readers are fully aware of this, I want to point out that Aon is actually a reinsurance intermediary. Thus they benefit from increasing rates without taking any risk or incurring any losses. Further, as the global leader in reinsurance brokerage and natural catastrophe expertise, Aon benefits from the increasing complexity and volatility of predicting catastrophes, as more primary insurance providers look for risk management solutions.
Rates will go as high as the Florida DOI allows them to. They currently have absolutely no actuarial soundness so anyone who thinks there will be an adjustment based on actual loss experience also believes in Santa Claus and the Tooth Fairy