Comment by wesselbindt
19 hours ago
The question this article seems to ask is "is the world becoming insurable while maintaining a profit margin?", not "is the world becoming uninsurable?" These are different questions, with different answers.
19 hours ago
The question this article seems to ask is "is the world becoming insurable while maintaining a profit margin?", not "is the world becoming uninsurable?" These are different questions, with different answers.
Insurance profit margins are razor thin. Many insurers pay out more in claims than they collect in premiums, and the difference is made up with interest and other returns on investments from the insurer’s massive reserves.
Insurers are strictly regulated at the state level. They have to keep enough reserves to pay a surge in claims. And they have to collect enough premiums to pay out an average claim volume, or else the state requires them to shut down.