New Catastrophe Bonds on Hold Pending Reinsurance Market Hardening

November 24, 2008

  • November 24, 2008 at 2:07 am
    sheltowee says:
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    I don’t mean to sound pesimistic but my gut feeling is that there is big big trouble looming. Based on what I’ve just read in this article and keeping in mind what is going on with hedging in the market. Most insurance companies are owned by corporations that may be owned by big financial institutions, like CHASE. This is the basis of the problem (who owns our insurance companies?).

    If we have the same or increased Catostophic events in ’09 and ’10 I really get the feeling that this is the beginning of the end of the insurance industry. It will start with the companies inability to purchase enough reinsurance or any at all.

    The question is do we have time to stop this. Answer, Yes but very little (perhaps a year). Will our gov’t recognize and take immediate action, such as protection for the financial markets against hedging and speculators, beginning the process of regulating the insurance industry effectively to eliminate or reduce significantly the risk exposure of the financial markets, and impose higher financial solvency expectations on the insurance companies (i.e. charge a rate for what you can deliver, bankruptcy exposure after a catastrphic event should be eliminated). The answer, “doubtful, I get the feeling that our politicians and many economist fail to identify the causes and effects of the insurance industry and how it relates to our economy. Any logical thinking is muddled by bureaucratic rhetoric and insurance lobbyist. If they suddenly realize what should be done, they will fail to take action soon enough.”

    In otherwords they will ***** foot around. I assure you there is a reason behind the greed and it isn’t because the greedy
    SOBs are optimistic about our future as a country.

    I encourage all individuals reading this to start praying in the name of Jesus and brush up on survival skills. Do you know how to outfit for a long hunt? Do you even know how to hunt? Seem ridiculus? How far will you go to survive? I hope it is but we’ll know in time.

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