Some natural disasters devastate huge amounts of property and assets costing huge amounts of money that I would assume policy holders would want to claim. Maybe I am naive to the huge amounts of profit that insurance companies make, but how do they survive financially?
In: Economics
Reinsurance. I used to work at an insurance administrator. One of our motor insurers went bust, because some big catastrophe happened in NZ which cleared them out on a policy they never expected to be used. They weigh up risk against profit. That insurer made the wrong call!
Latest Answers