“Reinsurance policies don’t kick in until a single disaster’s costs to insurers top $10 billion. When the billions are spread over numerous disasters, as has happened this year, insurers — and their customers — must absorb the costs.”
Really? As someone employed by a reinsurance broker, I can confirm that this statement is not even remotely accurate. Insurance companies and their brokers design their reinsurance programs to suit their own needs, which vary widely from company to company, and catastrophe reinsurance programs can be put together in many different ways, so one cannot make such broad statements. Perhaps you should consult with someone knowledgable about reinsurance before writing anyting further about it and unfairly blaming reinsurers for the woes of the catastrophe insurance market.
“Reinsurance policies don’t kick in until a single disaster’s costs to insurers top $10 billion. When the billions are spread over numerous disasters, as has happened this year, insurers — and their customers — must absorb the costs.”
Really? As someone employed by a reinsurance broker, I can confirm that this statement is not even remotely accurate. Insurance companies and their brokers design their reinsurance programs to suit their own needs, which vary widely from company to company, and catastrophe reinsurance programs can be put together in many different ways, so one cannot make such broad statements. Perhaps you should consult with someone knowledgable about reinsurance before writing anyting further about it and unfairly blaming reinsurers for the woes of the catastrophe insurance market.