This article makes no mention of reinsurance, the insurance insurance companies buy from reinsurance companies. Basically they’ll take out reinsurance policies from companies like Loyds of London to cover them in case there’s a catastrophe, such as a hurricane destroying an entire city, so they can still pay out the claims.
Seems a little odd it isn’t mentioned in this article.
When my insurer gives me tips on how to reduce my gasoline consumption, I tell them to stop investing in O&G producers.
If they were investing in them, they would want you to use more?
There’s an old sci fi story, I probably read it in the 70s, in which archaeologists figure out that a lost civilization on another planet died out because of a financial crisis. Wish I could remember the title or author, but all I remember is the archaeologist saying, “They went bankrupt!”
A bit of searching suggests this might be Total Eclipse by John Brunner.
The concept sounds interesting, I might give it a read.BINGPOT!!!
I definitely used to have that book in my collection, and I just found a synopsis that mentions a giant telescope mirror the aliens built in a moon crater - I definitely remember that part from the story. Great catch!
Good one, but the shoe event horizon is a satirical idea created by Douglas Adams. The story I’m thinking of was serious sci-fi.
Economic collapse as lateral damage.
Now I’m wondering if it makes any sense to double up on insurance.
Like finding a second company and getting a policy from them also.Depending on what it’s for, how much it’s for, and if allowed by laws, perhaps consider self-insurance.
Talk to a broker. Many companies consider dual policies a case of splitting the risk between them, not doubling the payouts even though both premiums are being paid.
That seems odd, since insurance is fundamentally just a bet. There’s no reason one can’t make two bets on the same thing.
It’s how medical insurance works in Canada if you have coverage from two working parents. Not sure about other forms wich is why I said check with a broker.
Thinking about this again, if someone has the money to pay two policies, they can probably self-insure depending on the specifics.
You usually can’t claim on both policies at the same time. I think for car insurance there’s nothing against having multiple policies on the same car, but if you claim on all of them for the same incident, it’s classed as fraud
I’m thinking, that if the companies are miss-evaluating the risk and underpricing, they may not be able to payout fully, or possibly at all in the event of a climate disaster. And since they’re underpricing the risk already, then the cost of two policies may be more in line with the actual risk.
Car insurance is a bit different.
Ultimately it’s all Lloyds of London. They insure pretty much every insurance company.
Loyd’s runs an insurance brokerage or market, they don’t actually underwrite the policies themselves.
He’s talking about reinsurance. Front-line insurance companies that you typically deal with directly are (sometimes? often?) “reinsured” by other insurance companies backing their risks. It’s turtles all the way down.
They also insure the insurance companies themselves. Insurance companies have to get payout insurance, for if they have to do a big payout.
